Mortgage to Rent Scheme will assist home owners facing repossession, says Housing Federation

Mr Donal McManus, Executive Director of the Irish Council for Social Housing (ICSH) today stated ‘The ICSH welcome the announcement regarding the Mortgage to Rent scheme which will assist those who are in serious mortgage distress facing repossession to stay in their family homes’. However, Mr McManus added, ‘there must be a sound financial basis to underpin the scheme in order to ensure its success’.

Housing associations will play an important part in the roll-out of the scheme and a number of ICSH members will be involved. Mr McManus concluded ‘The ICSH and its members will continue to work with Minister O’Sullivan in developing this solution which we hope will be adequately financed by Government’.

Notes

• The Irish Council for Social Housing is the National Federation of social housing organisations with up to 300 housing associations affiliated nationwide.

• Housing associations manages over 27,000 homes for families, elderly, homeless people and people with disabilities.

• The 2012 Government Housing Policy Statement places the voluntary housing sector at the heart of the Governments vision for housing provision.

• Last month, the Central Bank said 77,630 mortgage accounts were in arrears for 90 days or more in March. On top of this, another 38,658 mortgage holders have an agreement from their bank to lower their monthly repayments.

• Cluid Housing Association, a member of the Irish Council for Social Housing, was involved in the first pilot of the mortgage to rent scheme.

• The basis of the scheme is that a housing association will purchase the property from the bank with assistance from the Department of Environment, Community and Local Government under the CALF scheme and the mortgage holder remains in the house as a social housing tenant, paying a differential rent to the housing association.