COMHAIRLE CONTAE ÁTHA CLIATH THEAS
SOUTH DUBLIN COUNTY COUNCIL

MEETING OF TALLAGHT AREA COMMITTEE (1)

Thursday, December 02, 2010

MOTION NO. 2

MOTION: Councillor S. Crowe

This Council Committee calls on the Manager to give a report on the Housing Sales Scheme to tenants and how this scheme is being currently run and if the scheme is being affected by the difficulty in accessing banking loans during current finance liquidity difficulties.

REPORT:

The current Sales Scheme for the sale of local authority dwellings was announced by the Minister for the Environment in May 1995 and adopted by South Dublin County Council in June 1995. This scheme is still in operation.

To date in 2010, South Dublin County Council has received 32 applications to purchase under the Sales Scheme and this has resulted in 11 sales being completed (to date in 2010).  Following receipt of an application, the house is valued and the price is determined by the Valuers Office, Dublin City Council, in its existing state of repair and condition, less discounts. The structural condition of the house will be taken into account and any increase in the market value due to improvements made to the house will be disregarded in calculating the price.

A successful applicant is allowed discount of 3% of the value of the house for each year of tenancy (up to a maximum of 10 years) of a local authority house plus €3,810.00.  With 10 years tenancy, a tenant would qualify for a discount of €54,000.00 on a house valued €180,000. The purchase price of the house would therefore be €122,190. In general, all houses are included in the scheme with the exception of flats, apartments, duplexes, maisonettes and senior citizen dwellings. Authorities may, at their discretion, exclude houses for reasons of good estate management, because of their structural condition or if they have proposals to carry out remedial works to them.  Like all homeowners, a purchaser will be fully responsible for the upkeep and maintenance of the house from the date the purchase agreement is signed with the local authority. The purchase price will be payable at the point of sale and the tenant, as purchaser, will be responsible for raising the necessary finance. If a mortgage loan is needed the tenant must in the first instance apply to a bank or building society and in the event of a refusal from two financial institutions they may then apply for a house purchase loan to their local authority. Please note that only the person/persons who appear on the current Tenancy Agreement may apply for loan approval. The house must, unless the local authority otherwise allow, be occupied as a normal place of residence by the purchaser. If the purchaser wish to sell, re-mortgage or transfer the ownership of the house within a period of 20 years from the date of purchase they must get the consent of the local authority.

Obviously the economic downturn and related lending issues have affected the numbers of tenants who have the ability to purchase their homes. The overall number of mortgages being advanced nationally has reduced dramatically, and of course the sales of Council homes would be affected by this also. It is difficult to exactly determine the numbers affected by the downturn and lending difficulties. The Current Housing Sales Scheme in operation is being discontinued by the Department of Environment, Heritage & Local Government with effect from 13th June 2012.  We are currently in the process of writing to all tenants of the Council to inform them of the end of the scheme. A new scheme is to be introduced by the Department of Environment, Heritage & Local Government in 2011. As soon as we have details of the new scheme it will be circulated to the Members.