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The Journal
3 days ago
- Business
- The Journal
Housing minister 'not happy' that affordable homes were priced above threshold for state loans
A REVIEW INTO house prices has been completed and decisions will be made 'rapidly' to make sure costs do not price out homeowners from availing of government's local authority home loan scheme, the housing minister has said. His comments come after the Irish Times reported today that the price of affordable homes at a new state-development in Co. Kildare were above the threshold for new homeowners to avail of the mortgage scheme. The Local Authority Home Loan is open to first-time buyers and fresh start applicants who wish to purchase a new or second-hand property or for self-build. It provides up to 90% of the market value of the property. The maximum loan amount is determined by where the property is located. In Kildare, the local authority has limited the loan scheme to properties priced at €360,000 and under. Three-bed homes at the new estate cost €370,000. Asked about the disparity today, Housing Minister James Browne said he was 'not happy' about it. He said a review he commissioned on the issue was delivered to him yesterday. Advertisement He told reporters in Dublin: 'We'll make a decision on those will be made very rapidly, so we can get that review carried out and finished and get limits increased where they need to be increased. 'But, absolutely, that disparity – I'm not happy with that, and I'm going to have that addressed.' Minister James Browne said he was "not happy" about the disparity. Alamy Alamy Homeowners have previously told The Journal that they found the loan scheme 'restrictive' and that the details of the scheme, which have since been amended, were unclear. The minister said he 'wouldn't be surprised' if other new developments were also above the thresholds set for the home loan scheme, which is why, he said, he commissioned that his department review the issue. Browne said that he wanted to make sure that prices are aligned with the schemes available to families seeking to purchase homes. 'I want to try and get them aligned so that we don't have this type of disparity. I know it causes stress for families – I know one particular family that it cased an awful lot of stress for. 'I don't want that situation to happen. The government is spending record funding on delivering housing, on supporting people to get those homes, so that kind of misalignment – I certainly want to see an end of, and intend to being an end to that.' Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Irish Examiner
3 days ago
- Business
- Irish Examiner
Minister confirms review of home loan scheme as Kildare house prices exceed borrowing limits
Housing minister James Browne has confirmed a review has taken place into a council-led loan scheme after affordable houses in Kildare were found to be above the borrowing threshold. The review comes after reports of affordable homes in Kildare being ineligible for the Local Authority Home Loan scheme, as the cost of the houses is above the threshold at which people can borrow. 'I have asked for a review to be carried out around the home loan scheme to make sure it matches across the country in terms of those limits,' Mr Browne said. 'Those proposals are with me now, they actually already arrived yesterday. I'll be making a decision on those very rapidly.' The eight affordable homes in question, at Lattin Place in Naas, first went on sale earlier this week. Three types of houses are available, with a two-bed mid-terrace starting at €295,000, a three-bed mid-terrace starting at €365,000, and a three-bed end-terrace starting at €370,000. However, in Kildare, the maximum property value to allow someone to access the Local Authority Home Loan is €360,000. Mr Browne said he wanted to see the limits increased 'where they need to be increased' to remove any disparity around the Local Authority Home Loan scheme. Housing minister James Browne has confirmed a review has taken place into a council-led loan scheme. Picture: Sam Boal/Collins Photos He admitted that the scheme was not aligned in Kildare, but he was not aware of any other specific situations where the threshold did not align with the cost of an affordable home. 'I want to try and get them aligned so that we don't have this type of disparity because I know it causes stress for families… I don't want that situation happening,' Mr Browne said, following reports in the Irish Times. 'The Government is spending record funding on delivering housing, on supporting people to get those homes. So that misalignment, I certaintly want to see an end and intend to bring an end to that.' Meanwhile, Mr Browne has said the secretary-general at the department of housing, Graham Doyle, is 'fully supportive' of the creation of the Housing Activation Office. It followed comments from Mr Doyle on Thursday, where he said there was no need for a 'housing tsar'. The term has become widely associated with whoever is due to lead the new Housing Activation Office. However, Mr Browne said Mr Doyle had only gotten into a 'semantics debate' about the description of the job and 'what it should be called'. 'He's fully supportive of it. I've spoken with him since and his support is very much there,' Mr Browne said. 'It is the Government that makes the decisions and the Government will be driving on with really key decisions. The Housing Activation Office is one of those.' Read More Taoiseach and President warn Ireland is target of Israeli propaganda over Gaza stance
