Mark Wall (Kildare South, Labour)
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522. To ask the Minister for Housing, Planning, and Local Government if a person still paying a shared ownership loan can close off such a loan; the methods available in relation to same; and if he will make a statement on the matter. [65668/25]

Mark Wall (Kildare South, Labour)
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523. To ask the Minister for Housing, Planning, and Local Government the number of shared ownership loans still administered, by each local authority; the number of loans in negative equity, by each local authority, in tabular form; and if he will make a statement on the matter. [65669/25]

James Browne (Wexford, Fianna Fail)
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I propose to take Questions Nos. 522 and 523 together.

The "Shared Ownership Scheme" was a national scheme introduced by the Department of the Environment, Community and Local Government in 1992. Local authorities administered the Scheme in each of their administrative areas. The Shared Ownership Scheme was discontinued in June 2011 by the then Government.

The Shared Ownership Scheme was a housing scheme which facilitated access to full home ownership in two or more stages to persons who could not afford full ownership immediately. The applicant initially acquired a share of between 40% and 75% in a dwelling and rented the remainder from the local authority with an undertaking to acquire the remaining equity within a 25/30 year period. This share is known as the Rental Equity Balance.

There were two types of shared ownership loans. "Pre-2002 Index Linked shared ownership loans" and ‘post-2002 shared ownership loans’. Loans comprised a loan portion and a rental (leased) portion – most were a 50/50 split. Monthly payments are made on the loan borrowing and also a rental amount was paid. The two schemes differed in how the rental payments are calculated and the effect they have on the underlying rental equity portion outstanding.

Under the Index Linked Shared Ownership Scheme which operated from 1999 until 2002 rent paid did not reduce the rental equity balance. Amendments, which came into effect on 1 July 2015, had the effect of reducing the monthly cost for borrowers and avoid increases in the rental equity balance.

The more recent shared ownership scheme that operated from 2003 to 2011 sought to address the issue of paying down the rental equity balance by providing a formalised mechanism for the borrower to pay off the rental equity portion over the course of the term of the loan agreement. In effect payments on the loan that exceed the interest rate charged go towards paying off the rental equity balance.

A loan under this scheme and the associated Rental Equity Balance can be redeemed directly from the Local Authority by repaying the outstanding balances as provided for in the individual Shared Ownership Lease Agreements entered into by borrowers.