Cowen brands Mortgage to Rent scheme performance abysmal

Offaly TD Barry Cowen has described the performance of the government’s Mortgage to Rent scheme as truly abysmal.  

Twelve months on from a relaunch of the Mortgage to Rent scheme, the Fianna Fáil TD has said the scheme is not fit for purpose and is in need of a major overhaul.

His comments follow confirmation that just five cases involving Approved Housing Bodies have been fully concluded in Offaly under the scheme.

Deputy Cowen said, “in theory, the Mortgage to Rent scheme exists to provide a safety net for families who are set to lose their home because of mortgage arrears. Under the scheme, the family will lose the ownership of the home but will continue to live in it. Instead of paying a mortgage, the family will pay a rent to an approved housing body, such as a voluntary housing association.”

He noted “figures provided to Fianna Fáil show that just 162 Mortgage to Rent transactions involving Approved Housing Bodies have been approved nationwide since its inception in July 2012. Only five cases have been completed here in Offaly. This is a truly abysmal performance by the scheme.”

“With thousands of repossession proceedings in the system, it is deeply concerning this scheme is failing miserably to provide a safety net for those in arrears who are facing the prospect of losing their home. The Government needs to urgently review the scheme, remove the unnecessary bureaucracy and complexity inherent in it, and make it workable,” he insisted.  

According to Deputy Cowen, “we have been promised all sorts of things from this new government to help those struggling with the mortgage repayments. A good start would be to overhaul the Mortgage to Rent scheme and make it fit for purpose. The banks also need to step up to the plate and actively support the scheme. In this context the question of what happens to the residual debt once the property is sold to a housing association appears to be a major stumbling block.”