by Alan Jacques
THE new local authority tenant purchase scheme, that came into effect earlier this month, deliberately makes it very difficult for anybody on social welfare to purchase a house.
That’s the view of Limerick Fianna Fáil TD Willie O’Dea who says that no citizen should be excluded from the Tenant (Incremental) Purchase Scheme that is now open to social housing tenants who have a minimum gross annual income of €15,000.
Under the terms of the scheme, the Council will place an incremental purchase charge on the house equal to the discount given, with this charge reducing to zero over time. Where a local authority house is valued at €150,000 and the applicant’s gross annual income is €18,000 – a discount of 60 per cent will be given against the purchase price and the applicant would pay €60,000.
However, Deputy O’Dea, who is his party’s spokesman on Social Protection, is critical of the scheme, as he feels it excludes tenants who are dependent on social welfare payments as their primary income.
He claims that the new scheme is set up in a way that makes it deliberately very difficult for anybody on social welfare to purchase a house under the scheme.
“This is disgraceful, as since it was originally established by Fianna Fáil, the Tenant Purchased Scheme has been responsible for the greatest transfer of wealth in the history of the State and should not be denied to any citizen,” he told the Limerick Post.
“Last year Fianna Fáil announced its own plans to introduce a new tenant purchase scheme for over 125,000 families across the country. Opening up a path to home ownership is at the very heart of Fianna Fáil policy.”
Deputy O’Dea strongly believes that home ownership is good for families and good for communities.
“Ireland cannot afford a divided society where home ownership is confined to a few while the rest struggle with unstable tenure and rent levels.
“The right to buy under the Tenant Purchase Scheme has been an important tool in extending home ownership opportunities to low income households. The option to own a valuable long term asset has empowered thousands of families across the country and should not be denied to any family or individual”, he said.
A spokesman for Limerick City and County Council said that the scheme allows households with a minimum income of €15,000 to avail of discount between 40 and 60 per cent in purchasing their council home.
Tenants who have lived in social housing for one year can avail of the scheme and certain social welfare payments can be taken into account when they have a secondary income.”
