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Dáil

Ceisteanna—Questions. Oral Answers. - Local Authority Houses Sale.

asked the Minister for the Environment if he is aware of the policy of some local authorities whereby the sale of local authority houses to prospective tenant purchasers is being delayed for up to two years after receipt of applications; if he will explain the delays and if he will take the necessary steps to ensure that these delays will cease.

Comment on this

The implementation of their tenant purchase schemes is a matter primarily for the local authorities concerned and I am not aware that it is the policy of any authority to delay the finalisation of sales to tenants. In general, applications to purchase are dealt with by local authorities as expeditiously as possible.

However, the Deputy will appreciate that, as local authorities are now required to sell their houses in fee simple under the terms of the Landlord and Tenant (Ground Rents) Act, 1978, it is inevitable that delays will occur in cases where the local authority itself has to acquire the fee simple in property before the houses can be sold to tenants.

In addition, local authorities must ensure that houses sold to tenants are in good structural condition, in accordance with the provisions of section 106 of the Housing Act, 1966. In certain circumstances, due to the large number of houses being sold under the tenant purchase schemes, delays will occur in carrying out necessary pre-sale structural repairs to such houses. In order to obviate delay in finalising sales in these cases, I have included a provision in the Housing (Miscellaneous Provisions) Bill, recently introduced in the Dáil, to provide for an agreement between the prospective tenant purchaser and the local authority whereby the tenant purchaser may undertake to carry out certain agreed repairs after sale and, on their satisfactory completion, have the cost refunded to him by the local authority. This procedure should appreciably expedite the sale of these houses.

Comment on this

Does the Minister accept that delays have been and are occurring for as long as two years in the sale of these houses to would-be purchasers?

Comment on this

As I have said, there is no evidence of unnecessary delay as far as my Department are concerned from the information available.

Comment on this

I did not ask that. What I asked was if the Minister accepts that delays of up to two years are occurring.

Comment on this

Delays can occur for the reasons I have given in my reply.

Comment on this

Does the Minister accept also that the factors he mentioned, including the checking out of the structural condition of the house, are all factors which are very relevant in the sale of private houses but which are never used as a justification for a delay of as long as two years?

Comment on this

I also mentioned the fact that the fee simple has to be acquired as another reason as well as the structural repairs. In an effort to overcome any delay caused because of structural repairs I have included a provision in the Housing Bill to allow the tenant purchaser to do it and have it refunded after the sale. This should hasten the completion of sales held up for that reason.

Comment on this

How long does the Minister anticipate that the actual delays will be when this clause is approved?

Comment on this

The Bill has to be passed. I could not say how long they will be but it should cut the delays now occurring.

Comment on this
Jim Mitchell Mr. Mitchell Fine Gael

As the Minister said, the recent delays are mainly due to the fee simple, as far as I know. Is the Minister aware that a motion was passed by Dublin Corporation asking the Minister to approve an arrangement whereby in the case of delays of more than six months due to the ground rents Acts, the rent paid after that six months should be chargeable against sale costs? Is the Minister prepared to approve of that?

Comment on this

I will have a look at it.

Comment on this

Or abolish ground rents.

Comment on this
Jim O'Keeffe Mr. O'Keeffe Fine Gael

When will the Minister be in a position to make a decision on the motion?

Comment on this

I will make a decision as quickly as possible.

Comment on this