What is Sinn Féin's Affordable Homes Plan?

RTÉ's Political Correspondent Mícheál Lehane delves into the detail in Sinn Féin's Affordable Homes Plan.

What is it?

Sinn Féin's Affordable Homes Plan is an initiative to deliver 30,000 homes over the next six years.

The homes would be priced from €250,000 to €300,000.

The party says these homes would be affordable and would have lower mortgage payments.

Why is it in the news?

Under this plan the State would retain ownership of the land on which the home is built. This raises questions around whether banks would lend to people wanting to buy these homes, say Fianna Fáil and Fine Gael.

Is this true?

The group representing the banks, the Banking & Payments Federation Ireland (BPFI), says it has identified a number of issues that would require further consultation in order to enable lenders to provide mortgages. But it added that it remains committed to working with any future government to improve the supply of housing in Ireland.

What are these issues?

They centre on legal issues around the title of the property. Typically banks can seize a property and the land on which it is built if a borrower defaults on a property. Given the State's ownership of the land, things get more complicated here.

What is the solution?

Sinn Féin's Eoin Ó Broin says there is a simple way around this difficulty. It would mean that where someone who has bought an affordable home and willfully defaults on their mortgage the banks will have a charge on the land.

However, where they have fallen into mortgage distress through no fault of their own the State will step in and consider buying out the mortgage so the property could become a social or cost rental tenancy.

Will this work?

Sinn Féin says that following its discussions with the BPFI it is absolutely confident that the scheme will meet the requirements of lenders.

How long will this take?

Judging by length of time it took to get banks lending to previous State housing initiatives, it could take between 12 and 15 months to reach an agreement with the banks.