Government’s mortgage plan is a ‘failure’

The Government’s ‘mortgage-to-rent’ scheme has been branded a failure, after it was revealed that just one such property have been purchased in Galway.

City councillor Mairéad Farrell (SF) said the scheme – an initiative to help homeowners at risk of losing their homes – will not solve the mortgage crisis.

Under the scheme, homeowners who meet criteria can switch to renting their home as social tenants, but at the same time, they no longer own it or have any financial interest in it.

Cllr Farrell said the scheme has failed those in Galway who find themselves in mortgage distress.

Figures released in the Dáil show that since 2012, just one such property was purchased in the county.

“The fact that only one property has been purchased through the scheme in Galway is an indictment of how the scheme was designed and operated.

“This is at a time when families are struggling with mortgage repayments or exorbitant rents.

“Fine Gael and the Labour Party really need to catch themselves on in their approach to the mortgage crisis and the wider crisis in housing that we face in this state.

“They seem unable to grasp the seriousness of the problem and there is a clear lack of joined-up thinking from government when it comes to the area of housing.

“Minister Alan Kelly must now look at completely reforming the national mortgage-to-rent scheme so that it actually results in a benefit for distressed families,” said Cllr Farrell.