WHATEVER FORM the next government takes, it will face extremely difficult decisions concerning the provision of social housing and the treatment of households struggling with mortgage repayments. Outgoing Minister of State for Housing Michael Finneran has emphasised the need to provide additional protection for those families willing, but not able, to make full mortgage repayments because of unemployment.
He also recognised his Government’s failure to eliminate long-term homelessness.
The crash in property prices has exacerbated the difficulties facing many families as they struggle to meet payments on properties in negative equity. Some relief has been made available through a voluntary moratorium agreed between Government and mortgage lenders on repossessions, provided rescheduled payments are being made. As interest rates rise and the effects of unemployment become more pronounced, however, further intervention by the State may be required. The number of repossession orders granted last year by the Courts is still very low by international standards. But that figure of 600 is likely to rise in the absence of alleviating action.
For historical reasons, a great deal of raw emotion is attached to evictions. But the seizure of property and eviction of families have implications that go far beyond a landlord/tenant framework. In today’s world, there is a duty of care on government to provide basic accommodation for citizens. If families are dispossessed because of a failure to pay mortgages, it falls to local authorities to provide them with emergency accommodation and, eventually, with social housing. That involves considerable public expense. Eviction adds to the problems of an over-supplied housing market; crystallises lender losses and depresses values.
Broad political agreement exists that evictions should not take place unless there is a refusal – rather than an inability – by the householder to repay a mortgage. However, more may have to be done. Homeless agency, Focus Ireland has warned that an increasing number of people are presenting with mortgage arrears and greater effort will be required to keep them in their homes. About 400 long-term homeless individuals are already in need of rehousing. That number may grow in the absence of comprehensive and humane action by the incoming government and a flexible response by lending agencies. The way forward is unlikely to be either simple or painless.