The Government has concluded the first transaction under the new mortgage-to-rent scheme.

The transaction will see a housing association take over a home owned by a family who were facing repossession by a bank.

The family will now rent the home from the approved housing body Cluid.

As part of the deal the lender has written off a significant portion of the debt associated with the original loan.

The bank has provided a new loan to the housing body Cluid to buy the home in west Dublin, which allows the original occupiers to remain in the property.

The family have surrendered the home and become social housing tenants. The deal has been negotiated with the New Beginning group and the Department of the Environment.

Housing Minister Jan O'Sullivan told RTÉ News that there could be up to 100 distressed borrowers who may be in a position to avail of the scheme.

The mortgage-to-rent programme is targeted at homeowners whose properties could be suitable for social housing.

The borrowers must have unsustainable mortgages and face repossession from banks to qualify for the scheme.

They must agree to surrender their homes and then rent them from an approved housing body, which would then take control of the property.

The Department of the Environment provides 25% of the equity for the new loan.