Buying homes from distressed borrowers
Kirk proposed letting local authorities buy homes from borrowers struggling with mortgage payments and retain them as tenants. O’Brien opposed a general extension, citing possible queue-jumping and housing-programme problems, while explaining authorities may buy vacant or otherwise suitable homes.
asked the Minister for the Environment if he will consider extending the recently announced private house purchase scheme to allow local authorities to buy from house owners who are unable to meet mortgage repayments and then allow them to continue as occupants under the differential rent scheme.
Comment on this
The scheme under which local authorities may purchase private houses to supplement their rented stock is intended to enable authorities to provide houses where it has been established that housing needs exist and where it would not be possible for the authorities to provide suitable accommodation more economically or within a reasonable period of time.
I feel it would not be appropriate to extend this scheme in the manner suggested by the Deputy, particularly since it is understood that lending agencies adopt a sympathetic approach to mortgage holders who are in genuine difficulties and seek to come to a mutually acceptable arrangement to overcome these difficulties.
Comment on this
Would it not have been an ideal opportunity, given the serious difficulties which many people are encountering at present with mortgage repayments to various local authorities, for the Minister to take those people out of their difficulties by allowing them to remain in their houses as tenants under the differential rent scheme?
Comment on this
I do not think that would be a good idea as it might lead to many problems and anomalies in that people could perhaps jump a queue to get into a house. Many people, especially the lower income group, are availing of the Housing Finance Agency loan which takes unemployment into account and reduces the rent accordingly. It would not be in the best interests of a good local authority housing programme to do as Deputy Kirk suggests although I accept that the suggestion was made in good faith.
Comment on this
Has the Minister any information regarding the number of people who are in difficulties with their repayments to local authorities throughout the country? I am sure an increasing number of people are affected——
Comment on this
Powers have been given to local authorities to purchase private houses and there is no other way to come to terms with this problem, which will increase and multiply as time goes on.
Comment on this
We allow local authorities to purchase one off or groups of houses when they require houses urgently or where they want to get a greater social mix. They are not confined to new houses, they can buy secondhand ones, and they attempt to purchase vacant houses to accommodate as many people as possible. The Deputy seems to be advocating that local authorities should buy houses which are already occupied and that would not solve their housing problems.