Written answers
Thursday, 28 September 2023
Department of Housing, Planning, and Local Government
Housing Policy
Richard Bruton (Dublin Bay North, Fine Gael)
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188. To ask the Minister for Housing, Planning, and Local Government if affordable homes for purchase or cost rental, developed by the LDA or by AHBs, will be allocated to prospective clients through the local authorities; if the mix between cost rental and affordable purchase will be a matter for the local authorities or the respective developer, and if the retained equity share will be held by the Council or by the LDA or AHB. [41975/23]
Richard Bruton (Dublin Bay North, Fine Gael)
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189. To ask the Minister for Housing, Planning, and Local Government if the increase in the Central Bank recommendation on raising the ratio of mortgage to income from 3.5 to 4.0 has been fully carried over into the terms of first homes and of a local authority's affordable purchase schemes, and if he will outline how the approved equity injection is now calculated. [41977/23]
Darragh O'Brien (Dublin Fingal, Fianna Fail)
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The raising of the ratio of mortgage to income from 3.5 to 4 times for first-time buyers, as mandated by the Central Bank of Ireland, came into effect on 1January this year. With regard to the First Home Scheme, this change was carried over on the same date. Full details of the First Home Scheme are available at:www.firhomescheme.ie.
The Local Authority Affordable Purchase Scheme is governed by the Affordable Housing Act 2021 and its associated Regulations. The ratio of mortgage to income change was fully incorporated into updated Regulations (Affordable Housing Regulations, and Affordable Housing (No.2) Regulations), which I signed on 27January this year.
In the case of both schemes, the equity is still calculated as a percentage of the open market value. In the case of the First Home Scheme, the equity is calculated based on the monetary support provided to bridge the gap between a purchaser's mortgage capacity and deposit, and the market price. In the case of the Local Authority Affordable Purchase Scheme, the equity is calculated on the difference between the market price and the purchase price.
Richard Bruton (Dublin Bay North, Fine Gael)
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190. To ask the Minister for Housing, Planning, and Local Government if he has considered extending the equity supports for affordable purchase beyond new homes [41978/23]
Darragh O'Brien (Dublin Fingal, Fianna Fail)
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Housing for Alldelivers on the Programme for Government commitment to step up housing supply and putaffordabilityat theheartof the housing system.
There are two equity schemes currently available to support the affordable purchase of homes to eligible applicants.
The First Home Scheme is operated by a Designated Activity Company (DAC), governed by a Board of Directors comprising representatives of the scheme funders, i.e. the State, AIB, Bank of Ireland, and Permanent TSB. As such, any expansion of the scheme would be a matter for consideration by the First Home Scheme DAC and its Board.
Under the Local Authority Affordable Purchase Scheme (LAAPS), affordable homes are made available by local authorities, with the focus on new-build homes in order to increase supply in those areas where affordable homes are needed most. LAAPS is governed by the Affordable Housing Act 2021 and its associated Regulations (S.I. 20/2023, and S.I. 21/2023).
Mortgages for second-hand properties are already available to eligible applicants through the Government-backed Local Authority Home Loan, details of which are available atwww.localauthorityhomeloan.ie.
As Minister, I continue to consider all options that support innovation and the delivery of affordable homes under Housing for All.
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