Mortgage to rent changes a welcome move - Ryan
13 May 2015
Brendan Ryan, Labour Party TD for Dublin Fingal, has welcomed the changes to the mortgage to rent scheme announced today by Minister for Environment Alan Kelly.
Ryan “I welcome the raising of the threshold for an average three bedroom home in the greater Dublin area from €220,000 to €350,000. This is something I have called for in my work as a Chariperson of the Labour Parliamentary Party group on Housing and have raised this in a parliamentary question. There are many people I have dealt with in my own constituency of Fingal who will benefit from these changes announced today. The mortgage to rent scheme has been criticised for its stringent rules and subsequent poor uptake. The scheme had only processed 100 or so cases in the past three years. In my experience one of the main barriers to people applying for the scheme was that valuation threshold was too low.”
Ryan “I also welcome new flexibility in relation to the size of properties which qualify for the scheme. In practical terms this would mean that an assessment of the property size suitable to a particular household will allow for an additional bedroom in the property above the actual needs of the household”
Ryan “I believe that the Mortgage to Rent scheme needed to be modified and I welcome today’s announcement. I would ask that the scheme in its entirety remain under review with a view to ensuring more people in arrears are afforded a chance to avail of Mortgage to Rent”
Notes for Editors
Parliamentary Question from Brendan Ryan TD
To ask the Minister for the Environment, Community and Local Government his views on amending the terms of the Mortgage-to-Rent scheme, in order to raise the threshold of house values from €220,000, to a level which reflects the increase in property prices since the scheme has come into being, as many families are still dealing with serious mortgage distress; and if he will make a statement on the matter.
- Brendan Ryan.
For WRITTEN answer on Tuesday, 10th February, 2015.
Ref No: 6142/15
Minister for the Environment, Community and Local Government (Deputy Alan Kelly)
In order for a property to be considered under the mortgage to rent scheme it must be purchased by an Approved Housing Body for less than €220,000 (per property) in the Greater Dublin Area and €180,000 (per property) in the rest of the country. These limits were determined by a working group which took account of available market data and the current social housing acquisition limits. These limits are considered to be reasonable in respect of the income bracket that is targeted by the scheme.