Skip to main content

Mortgage Interest Relief Supplement Facts...

Mortgage misery index shows commuters' pain...

DURING the Celtic Tiger era, the most high-profile example of how the country was finally wealthy was the booming numbers who constituted Ireland's 'rich list'.

However, the new realities of post-boom Ireland are epitomised by a county-by-country breakdown of the numbers receiving Mortgage Interest Relief Supplement (MIRS), that has just been compiled by the Department of Social Protection.

MIRS is a scheme whereby the Department of Social Protection pays the interest part of a mortgage when householders become unemployed and can no longer meet their payments.

Such payments are supposed to be short term -- although in practice this is no longer the case -- and are meant only to cover the interest element of the mortgage.

After a modest start to the scheme, the numbers availing of it -- and therefore its cost -- have almost quadrupled.

Unsurprisingly, the department's figures indicate that the two counties with the largest numbers of citizens in receipt of the relief were Dublin and Cork.

But when it came to the Misery Index, which traces the top sufferers from the collapse of the property boom, other high population centres, such as Galway and Limerick, area lowly seventh and eighth on the department's mortgage map.

Instead, recipients of MIRS are overwhelmingly concentrated in the 'commuter constituencies' of Kildare, Meath and Wexford, while the figures are also surprisingly high in counties such as Tipperary and the Taoiseach's own constituency of Mayo.

The political consequences of the collapse of the housing market are illustrated by the fact that Fianna Fail does not currently have any Dail seats in Dublin, Kildare or Meath and has just one in Wexford.

The statistics reveal that, astonishingly, five counties have more than a thousand households that are in receipt of the supplement.

In a grim illustration of the extent of the housing collapse, the list reveals that an estimated 19,720 houses will be in receipt of the supplement in 2011 at an estimated cost to the Exchequer of €77.2m.

It should be noted that whilst households technically receive the supplement, the money actually goes to the banks, in what amounts to another taxpayer-funded subsidy.

The figures supplied by the department also reveal that when the numbers receiving MIRS are combined with those who are in receipt of rent supplement, almost 120,000 households are receiving housing support from the State at a cost of more than €520m.

When it comes to mortgage interest relief, the latest statistics also reveal that during the boom years of 2002 to 2005 the numbers availing of the scheme fell by 10pc, 16pc and 3pc respectively.

However, this was more than counterbalanced by increases of 97pc in 2008 and 87pc in 2009 -- although the rate of increase has subsequently flattened out.

Nevertheless, increases of 19pc in 2010 and an estimated increase of 10pc this year means the numbers availing of the scheme over the previous three years have almost quadrupled.

Report by JOHN DRENNAN - Sunday Independent

Popular posts from this blog

Ireland's Celtic Tiger Excesses...

'Bang twins' may never get to run a business again... POST-boom Ireland is awash with cautionary tales of Celtic Tiger excesses, as a rattle around the carcasses of fallen property developers and entrepreneurs will show. Few can compete with the so-called Bang twins for youth, glamour and tasteful extravagance. Simon and Christian Stokes, the 35-year-old identical twins behind Bang Cafe and exclusive private members club, Residence, saw their entire business go bust with debts of €9m, €3m of which is owed to the tax man. The debt may be in the ha'penny place compared with the eye-watering billions owed by some of their former customers. But their fall has been arguably steeper and more damning than some of the country's richest tycoons. Last week, further humiliation was heaped on them with revelations that even as their businesses were going under, the twins spent €146,000 of company money in 18 months on designer shopping sprees, five star holidays and sumptu...

As Featured On Dublin Postcards, Ad's, U2 Video...

I see in the Irish Independent today an item concerning a favourite, Dublin landmark, of mine... "THEY have featured in numerous postcards and a very famous Guinness ad, but perhaps their most important cameo appearance came when they featured in U2s 'Pride (In The Name Of Love)' video. However, Dublin City Council does not believe the Poolbeg chimneys are iconic enough to place on their Record of Protected Structures. Following a request from Cllr Dermot Lacey (Lab) to have the landmark ESB chimneys placed on the protected record, city councillors heard that city planners had conducted a survey, history and full assessment of the chimneys. They concluded from this that while the Poolbeg chimneys were considered to be of a certain level of architectural, social and historical significance, they were not of sufficient value within the meaning of the Planning and Development Act, 2000. Complex The twin red and white chimney stacks measure 680 feet in height and were construc...

Developers Cut New Home Prices In Dublin...

Developers cut prices of new homes in Dublin... Developers have sharply reduced prices at some of Dublin’s bigger housing schemes this weekend, in a bid to stimulate sales of vacant units and entice first-time buyers into the market. Price reductions of up to €150,000 are being offered at the latest releases of apartments and houses for sale. P Elliott & Co has put a total of 80 units at four of its apartment schemes, on to the market through Hooke & MacDonald, at substantially reduced prices. Prices now start at €169,000 for a one-bedroom apartment at Arena in west Dublin, while a two-bedroom apartments at Mellowes Quay in Dublin 8 now costs €269,000, down from a high of €415,000 in spring 2007. Jackson Homes, Kingscroft Developments and Durkan New Homes have also reduced prices at their schemes by about €100,000, or up to 30 per cent on peak levels. Estate agents reported strong enquiries ahead of this weekend’s releases. ‘‘Based on the level of enquiries we’ve had, we expect...