Budget fails to tackle key housing issues

Ireland's largest housing provider contends that today's budget has not gone far enough to help those families in arrears with excessive mortgages. While the extension of the six month moratorium is welcomed, Respond! Housing Association maintains it is not sufficient and will not help struggling families remain in their homes.

According to Respond! spokesperson Aoife Walsh, the six month moratorium will simply delay the inevitable for many families.
“More certainly needs to be done to help those struggling to repay their mortgage due to unemployment or reduced income. The introduction of the statutory mortgage code last February which first established the six month moratorium has had little or no impact on the number of repossession cases coming before the courts. This week alone 13 repossession orders were issued in the High Court and despite the moratorium announced today, we fear worse is to come.“

Respond! also maintains that the Government has failed to tackle the issue of negative equity. The housing charity claims that the extension of mortgage interest relief does not help people deal with the massive gap that exists between their mortgage and the current market value of their home.

“The ESRI has predicted that by the end of next year, 350,000 people in Ireland could be living in negative equity. For any of these people who need to sell their home, today’s budget has not introduced any measures that would reduce the level of debt they owe. Negative equity is one of the major problems being experienced in Ireland today and it is disappointing to see that the Government has failed to address it in this Budget” added Walsh.

“It is imperative that the Government does more to help those families in arrears and living in negative equity. We saw in today’s budget that funding for social housing and supports is being cut by a massive 27% so the State will not be in a position to provide housing for families who lose their home through repossession. At a time of acute need, this will have a devastating effect on the vulnerable in our society” concluded Walsh.