Paul Murphy (Dublin South West, RISE)
Link to this: Individually | In context | Oireachtas source

301. To ask the Minister for Housing, Planning, and Local Government the details of his plans to change the over-occupancy rule in the mortgage-to-rent scheme (details supplied); when these changes will be implemented; and if he will make a statement on the matter. [3410/22]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The Mortgage to Rent (MTR) scheme introduced in 2012 is targeted at supporting households in mortgage arrears who have had their mortgage position deemed unsustainable by their lender under the Mortgage Arrears Resolution Process (MARP); agree to the voluntary surrender of their home and are deemed eligible for social housing support. The property in question must also meet certain eligibility criteria. The concept of the scheme is that a household with an unsustainable mortgage goes from being a homeowner to being a social housing tenant. The borrower surrenders their property to their lender who sells it to a MTR provider which can be either an Approved Housing Body (AHB) or since 2018 a private company, Home for Life Ltd. The AHB or local authority (in the case where the property is sold to a private company) becomes the landlord and the borrower remains in the property as a tenant paying a differential rent to the landlord based on his or her income.

To the end of December 2021, 1682 households with unsustainable private mortgages have completed the MTR scheme since its introduction nationally in 2013. The 1682 households in the scheme represent 2738 adults and 2274 children who have remained living in their homes and communities. As of that date, 720 active cases were being progressed under the scheme. The Housing Agency publishes, on a quarterly basis, detailed statistical information on the operation of the MTR scheme on the Housing Agency's website at the following link: www.housingagency.ie/housing-information/mortgage-rent-statistics

Both the Programme for Government and Housing for All commits to strengthening the MTR scheme and ensuring that it is helping those who need it. Building on the significant amendments already made to the scheme in 2017, the 2021 Review, published on the 24 January 2022, examined the impact of these changes and what further changes would benefit those in need of the scheme. While the scheme is performing well, it was assessed that some further enhancements were needed to enable more households in need of State support with their long-term housing needs to avail of this scheme. Four broad categories of actions are identified in the review, including:

a) broadening eligibility criteria;

b) improving the scheme process, structure and financing;

c) increasing communication and awareness raising; and

d) responding to developments around mortgage arrears solutions.

As part of the enhancements to broadening the eligibility criteria to ensure more households will be eligible for the scheme there is a new amendment to allow flexibility where the household concerned is over accommodated (i.e. has more than 2 spare bedrooms above the current needs of the household). Flexibility on over accommodation may be allowed where:

a. the borrower or one of the joint borrowers is aged 65 and over

b. the borrower, one of the joint borrowers or one of the borrower’s dependents has a disability and the property has been significantly and permanently adapted to their needs

c. the borrower, one of the joint borrowers or one of the borrower’s dependents has a disability and the property is specifically suitable to their needs without adaptations

In the case of (b) and (c) above, the household must also qualify for Social Housing Support on disability, medical or compassionate grounds in line with the local authority’s allocation policy. Such flexibility is subject to the local authority or AHB (as appropriate) reserving the right to accommodate the household in more appropriate accommodation, if available, in the future.

This is one of a number of changes outlined in the 2021 Review and will be implemented under the scheme from February 14, 2022.

The 2021 Review of the Mortgage to Rent (MTR) scheme for people who have borrowed from commercial private lending institutions is available on the Department's website under Publications: www.gov.ie/en/publication/ed57b-2021-review-of-the-mortgage-to-rent-scheme-for-borrowers-of-commercial-private-lending-institutions/