Sligo meeting hears calls for Minister to abolish income thresholds for mortgage to rent scheme – ‘people are trapped’

By Philip Rooney, The Sligo Champion

There was widespread support for a motion before the November meeting of Sligo County Council which called on Sligo County Council to request the Minister for Housing, Local Government and Heritage to remove the social housing income thresholds as a qualifying criterion for those wishing to avail of the mortgage to rent scheme.

Outlining the seriousness of the situation Cllr Ann Higgins said, “This effects all types of households, it is not just one cohort.”

Cllr Higgins told the meeting she has been contacted by a number of people who were on mortgage to rent schemes, which was introduced to help people who may be in danger of losing their home as a result of difficulties faced meeting mortgage repayments.

Outlining the difficulties people are facing with the scheme Cllr Higgins said homeowners are only deemed eligible for the scheme “Under social housing criteria,” adding, “It is next to impossible to avail of it.”

Cllr Higgins gave an example of a couple who marginally exceed the €31,000 income threshold as a result of a small private pension.

"The scheme that is meant to be helping them is actually working against them.”

Cllr Higgins added, “The whole purpose is to keep people in their homes. The motion calls for the removal of barriers otherwise driving people into homelessness.”

The motion was supported by Cllr Arthur Gibbons who said, “People are trapped. One single mother I am dealing with, working part-time has put her over the threshold. It is something the government needs to look at. Couples are told if they get €32,000 they are no eligible but they can't get a mortgage with that income.

"It gave people a lot of security when they could apply for a mortgage with a half decent job. If unsuccessful they could apply to the Council. People are living in a poverty trap and there is no way out of it.”

The motion was also supported by Cllr Tom MacSharry who said, “Mortgage to rent is a very good scheme. When you have people who worked, raised their family and have a small pension, through no fault of their own, the mortgage is sold on. They are looking forward to their golden years. It is a problem that is only going to increase.”

Cllr MacSharry added, “People are saying houses in Sligo or Galway are now Dublin prices. People who are struggling, people who are doing the right thing, are finding they are caught.

"It’s a win-win for the local authority. It’s something the Housing Minister needs to hear from the local authorities.”

Article Funded by the Local Democracy Reporting Scheme.