Thursday, 16 December 2021
Department of Housing, Planning, and Local Government
The Mortgage to Rent (MTR) scheme was introduced for local authority borrowers initially as a pilot in 2013, and has been in place nationally since 2014. Under the scheme, a local authority can acquire ownership of properties with unsustainable local authority mortgages, thus enabling the household to remain in their home as social housing tenants. From its inception in 2013 to end 2020, the Local Authority Mortgage to Rent scheme has benefited a total of 532 households.
The following local authority costs are funded by the Department. Local authorities must use funding received under the Local Authority Mortgage to Rent scheme to re-pay the corresponding loan with the Housing Finance Agency.
- The Property Ownership Transfer Price (Open Market Value of the property minus the cost of essential repairs, as agreed by the borrower and the local authority)
- Vouched essential repair costs (repairs that are required to ensure that the property meets the minimum standards for rented accommodation)
- Up to 1.5% of the Open Market Value in respect of vouched local authority legal and valuation costs
The local authority can also draw down an amount to the maximum of €1,230 (€1,000 plus 23% VAT) towards the borrower's vouched costs, which include a contribution to their legal and debt advice and, where appropriate, valuation costs.