Sinn Féin

11/27/2020 | News release | Distributed by Public on 11/27/2020 04:30

Rebuilding Ireland Homeloan mortgage drawdowns fall by 70% during COVID 19 - Eoin Ó Broin TD

27 November, 2020 - by Eoin Ó Broin TD

Sinn Féin spokesperson on Housing, Eoin Ó Broin TD, has voiced his concern at the 70% drop in the draw down of Rebuilding Ireland Homeloan mortgages in 2020 as a result of Covid19.

The Dublin Mid-West TD's comments come on foot of information provided to him by the Department of Housing.

Teachta Ó Broin said:

'Figures I received in response to a parliamentary question indicate that Covid19 has had a dramatic impact on the drawdown of Rebuilding Ireland Homeloan mortgages in 2019.

'In the first half of 2019 a total of 470 Council mortgages were drawn down. In the first six months of 2020 that number had fallen to just 212 - a drop of 54%.

'However if you compare the Q2 figures in both years you see 231 drawdowns in Q2 2019 compared to just 67 in Q2 in 2020. This represents a 70% drop in mortgage drawdowns.

'Given that the real impact of Covid19 only began to impact on peoples earnings from March of this year it is clear that Covid19 has had a significant impact on the drawdown of Rebuilding Ireland Homeloans.

'It is very concerning that that the blanket ban issued on Rebuilding Ireland Homeloan mortgage drawdowns for households on the Wage Subsidy Scheme and Pandemic Unemployment Payment has resulted in a significant number of potential buyers not being a position to draw down the mortgages that they were approved in principle for.

'Households applying for the Rebuilding Ireland Home Loan are generally on lower incomes which are the cohort of people who have been more adversely impacted by Covid19 and the temporary layoffs due to the restrictions.

'We need to see a fuller picture and the Minister for Housing must publish the quarter three data for 2020 as a matter of urgency. He must also make a statement on the matter to give his view on this dramatic drop in mortgage drawdowns.'

ENDS

Note to editor:

For Oral Answer on : 24/11/2020
Question Number(s): 51 Question Reference(s): 38311/20
Department: Housing, Local Government and Heritage
Asked by: Eoin Ó Broin T.D.
______________________________________________

QUESTION

To ask the Minister for Housing; Local Government and Heritage the number of Rebuilding Ireland home loan drawdowns to date in 2020 in each local authority; and the average amount drawn down in each local authority in tabular form.
REPLY

My Department publishes information on the overall number and value of (i) local authority loan approvals and (ii) local authority loan drawdowns. Local authority approval means that an official letter of offer has been sent to a borrower (and therefore relates to a specific property and loan amount).
Figures for the first two quarters of 2020 are available on my Department's website and I will arrange for the relevant weblink to be circulated with the official record.
[Weblink to be included with the official record:]
https://www.housing.gov.ie/housing/statistics/house-prices-loans-and-profile-borrowers/local-authority-loan-activity