Lowry welcomes changes to Local Authority Tenant Purchase Scheme

Changes to the Incremental Tenant Purchase Scheme that come into force on the 29th of this month have been welcomed by Deputy Michael Lowry.

"These changes will make it easier for those living in Local Authority houses to become homeowners", he says.

"The changes are particularly significant for older tenants as they include a reduced income requirement in addition to the expansion of the Social Welfare Payments that can be included in assessing the income of an applicant.

"I have been calling for this Purchase Scheme to be more flexible and accessible for tenants to purchase their homes. I have seen all too often in the past where homes pass out of families because parents found the previous Scheme prohibitive", says Deputy Lowry.

The Incremental Tenant Purchase Scheme allows Local Authority tenants to buy their homes with discounts on the market rate paid of up to 40% and 60%, with this amount dependent on their income.

An Incremental Purchase Charge, which is equal to the discount, is placed on the house and this remains in place for up to 30 years. The amount reduces annually by 2% until it reaches zero provided the new owner conforms to the Terms and Conditions of the scheme.

These conditions include that the purchaser must live in the house. They must have agreement from their Local Authority if they want to sell, let or sub-let the house.

If they choose to sell the property while the Incremental Purchase Charge is still in existence, they must pay back the value of the outstanding charge on the house to their Local Authority.

The changes to the Incremental Tenant Purchase Scheme include the minimum income requirement for the Scheme being reduced from €12,500 to €11,000.

Prior to these changes, couples making a Joint Application to buy their house each had to be in receipt of Social Housing supports for 10 years before they were eligible to purchase. Now just one of the tenants is required to meet this criteria.

Up to now only the income from employment and both Private and State pensions were included in the calculations to determine a tenant’s minimum income. Under the new rules income from certain Social Welfare payments can also be included.

These Social Welfare Payments include the Widow/Widower/Surviving Civil Partner’s (contributory and non-contributory) Pension, the Blind Pension, the Invalidity Pension and the Disability Allowance.

"Losing a house where a family has been reared is very traumatic and upsetting. I welcome these changes, which will assist more people in buying the Local Authority home which is currently theirs on a rental basis", Deputy Lowry said.