We use Google Analytics to see which pages are read and how the site is used, so we know what to improve. This only runs if you accept. See our privacy notice for details.

Dáil

Ceisteanna—Questions. Oral Answers. - SDA Loans.

asked the Minister for the Environment the proposals, if any, to increase the amount and income limits in relation to the SDA loans presently available.

Comment on this

While I have no immediate proposals to increase the loan and income limits, I am keeping the matter under continuing review.

Comment on this

Does the Minister honestly believe that the gross ceiling of £3,500 presently applying to applicants for SDA loans is realistic in view of the fact that the price of houses has soared inordinately during the last 14 to 16 months? Will he give urgent consideration to at least increasing the income limit, which is making it increasingly impossible for people to consider even applying for loans?

Comment on this

The experience is not in accordance with what the Deputy says. Applications in the hands of local authorities at 30 September 1978 were valued at £66.6 million as against £43.7 million in the corresponding period in 1977.

Comment on this
Thomas J. Fitzpatrick Mr. T.J. Fitzpatrick Fine Gael

(Cavan-Monaghan): Has the £67 million been approved?

Comment on this

The applications would account for that amount as compared with applications for £43 million for the corresponding period in 1977. The expenditure for the scheme in 1978 is expected to have been in the region of £30 million as against £17 million in 1977.

Comment on this

How many loans do these figures cover?

Comment on this

I have not got the number of loans—I have got only the total figure.

Comment on this

It is the number of loans that is important. They may have been very small loans. The income limit is £3,500 and the loan limit is £9,000. How is the person earning £3,500 expected to be able to raise the balance between that and the price of the house. Where are houses available at prices within the incomes of young couples?

Comment on this
Joseph Brennan An Ceann Comhairle Fianna Fáil

The Deputy is engaged in argument.

Comment on this

I am reminding the Deputy that if the loan limit had been left at £4,500 as it was a year and a half ago—despite the increase in house prices in the meantime the limit is now £9,000——

Comment on this
Thomas J. Fitzpatrick Mr. T.J. Fitzpatrick Fine Gael

(Cavan-Monaghan): Is the Minister satisfied that a couple with an income of £3,500 can service a loan of £9,000?

Comment on this

Because of the availability of other mortgage finance, the societies appear to be filling the need immediately above that figure.

Comment on this
Thomas J. Fitzpatrick Mr. T.J. Fitzpatrick Fine Gael

(Cavan-Monaghan): I do not think the Minister got my question. Is he satisfied that a couple with an income not exceeding £3,500 are capable of servicing a loan of £9,000—that they can afford it?

Comment on this

The usual criterion for deciding what a person can afford in order to be able to service a loan involves two and a half times the income. That is the general criterion and here we are talking about a loan which is just a little more than two and a half times the income.

Comment on this
Thomas J. Fitzpatrick Mr. T.J. Fitzpatrick Fine Gael

(Cavan-Monaghan): Does the Minister not know very well that they cannot afford to service such a loan?

Comment on this

That is the criterion.

Comment on this
Peter Barry Mr. P. Barry Fine Gael

Where can a young couple find a house at these figures?

Comment on this

I would remind the Deputy that houses throughout the country are not as dear as in Cork or Dublin. The prices vary.

Comment on this

Why mention Cork and Dublin?

Comment on this

I could mention my home town but I do not want to get into a litany——

Comment on this

It is a litany of woe which began in 1977.

Comment on this

More houses were built last year than the previous year.

Comment on this

Give us the figure for the people housed.

Comment on this