Seán Sherlock (Cork East, Labour)
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532. To ask the Minister for Health if he will provide an update under Housing for All to an amended fair deal scheme to remove disincentives for sale and rental of vacant properties. [7132/23]

Mary Butler (Waterford, Fianna Fail)
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Proceeds of Sale

The Nursing Homes Support Scheme (Amendment) Act 2021, which was signed into law on 22 July 2021, and commenced on 20 October, introduces further safeguards in the NHSS to further protect the viability and sustainability of family farms and businesses. It also includes an amendment in relation to applying the 3-year cap to the proceeds of sale of a house while a resident is in long-term care. This addresses the first relevant commitment in the Housing for All Strategy (action 19.7).

Within the NHSS, the asset value of a resident's home, known in the Scheme as the "principal residence", is assessed for 3 years, with 7.5% of its value going towards the cost of care (3.75% in the case of a couple). After a person has been in care for 3 years , the value of this property is no longer assessed. In practice, this generally reduces the nursing home fees of those maintaining their home, from year four onwards. The 2021 Act now extends the 3-year cap to cover the proceeds of sale, so that a person will be able to sell their home without incurring additional fees from their fourth year in long-term residential care onwards. This applies even if the home is sold before 3 years in care; the proceeds of sale will be assessed up to the 3-year point, but excluded from assessment after that.

Further details can be found here: www2.hse.ie/services/fair-deal-scheme/the-3-year-cap.html

Rental in NHSS

Effective from 1 November, the amount of rental income that nursing home residents can retain under the Fair Deal from renting their principle private residence increases from 20% to 60%.

Prior to the change outlined above being implemented, participants in the Fair Deal scheme were able to rent out their homes or other assets, but rental income was subject to assessment at 80% like all other income (such as pension income).

Recognising that this may act as a disincentive against renting out a property, the Government approved a policy change to the Nursing Homes Support Scheme “Fair Deal”, to remove a disincentive for applicants to the Scheme to rent out their principal residence after they have entered long term residential care. The rate of assessment for rental income from a principal residence is reduced from 80% to 40%. This will be reviewed after six months of operation, with the potential for further amendment after that point.

It should be noted that rental income accrued from property that is not a principal private residence will continue to be assessed at 80%.

This policy change addresses the commitments made under Housing For All Action 19.8. The change was made through a Committee-Stage amendment to the Department of Housing, Local Government and Heritage’s Regulation of Providers of Building Works and Building Control (Amendment) Bill 2022 which is in operation as of 1 November.

Further details are available at: www2.hse.ie/services/schemes-allowances/fair-deal-scheme/financial-assessment/#rental-income-for-your-home

These measures will allow residents in Fair Deal to keep more of their income and will also help address pressures on the rental market. It is important that residents who choose to rent out their homes do so in a safe and supported way. The well-being, safety and comfort of nursing home residents remains a priority for me.