Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Mullen Park estate in Maynooth, Co. Kildare. Eamonn Farrell/RollingNews.ie

Govt accused of frustrating 'hopes and dreams' of families as it commits to action on global funds buying housing estates

The Housing Minister has said that proposals could be tabled as early as next week.

PROPOSALS AROUND CHANGING the tax treatment of institutional investors who purchase large sections of housing estates could be considered by government ministers as early as next week it seems.

Yesterday, The Journal reported that Housing Minister Darragh O’Brien has instructed his officials in the Department of Housing to look at the options available with a view to bringing changes as part of new Planning and Development legislation.

This could see the legislating for a specific ring-fencing of homes for first-time buyers as per the minister’s own 2019 Bill or possibly banning investment funds snapping up estates in their entirety outside of city centres.

It is understood that investment funds buying up housing estates will be “corrected”. 

The Housing Minister as well as Finance Minister Paschal Donohoe are discussing the issues, and solutions should be ready “as soon as possible”. 

Speaking in the Dáil this afternoon, Tánaiste Leo Varadkar that the government will take action on the issue “in the coming weeks”.

While the proposals might go to Cabinet next week, overnight changes are not being ruled out.

O’Brien told this website that it will be an “all of government approach” which means his Fine Gael colleagues will have to get on board, and with taxation falling into the lap of the finance minister, it will be interesting to see what tax loopholes being availed of by these investment funds might be on the chopping board. 

“We do need to look at tax treatments in this space,” he said, something he repeated today on Ireland AM. 

In what could be seen as putting pressure on Finance Minister Paschal Donohoe, O’Brien said there is only so much he can do with planning laws.

On Newstalk’s Pat Kenny radio programme the housing minister said the tax treatment of these funds is where things will be solved long term.

He confirmed that measures are being considered to stop investment funds buying up full housing estates “up to and including” an outright ban.

O’Brien commits to having proposals ready by next week when it comes to legislating for investment funds.

Leaders’ Questions

The housing crisis and the fallout from Round Hill Capital buying 135 homes at a new development in Maynooth, Co Kildare dominated today’s Leaders’ Questions. 

Sinn Féin’s Pearse Doherty said that international funds buying up property in Ireland has been “happening for years” and that is has been “encouraged and incentivised” by government policy. 

“You’ve created this situation for these international investment funds snapping up family homes, locking first-time buyers out off the market,” he said.

That is the reality, you’ve frustrated the hopes and dreams and aspirations of many workers and families who aspire to own their own homes.

He added: “Tánaiste will you, as Sinn Féin has argued for over the years, take away the tax breaks and advantages that you gave to these funds?”

In response, Tánaiste Leo Varadkar said that both he and government “strongly believe in the concept of homeownership” and the buyout in Maynooth “is not consistent with government policy”. 

“As things stand at the moment less than 1% of the housing stock in Ireland is owned by investment funds, and that’s much lower than will be the case in most other developed countries,” Varadkar said. 

“Their correct role is to finance the construction of developments, not to swoop in and buy housing estates or developments that are already substantially complete. That’s what we need to change and that’s what the government intends to change with the actions it’s going to take in the coming weeks.”

Social Democrats co-leader Róisín Shortall said that the government has  “professed surprise” about global funds buying up homes when it’s been happening for some time.

“Since 2018 they have spent €4 billionn on residential property in this country. Did anyone in government even notice that Tánaiste,” she asked. 

In response, Varadkar said that if the SocDems want “a ban on some forms of housing or some forms of housing investment….I think that would be a mistake.”

He latter added that the government does not want to introduce something that may have the unintended consequence of reducing the supply of housing. 

“We want to avoid a reduction in supply by banning forms of private investments but I’m sure we can find a solution that gets the balance right. I can’t give you a timeline at the moment, but I know that Minister O’Brien and Minister Donohoe are treating this with urgency and we’d hope to have proposals very soon,” he said.  

- With reporting by Rónán Duffy

 

 

 

 

Close
49 Comments
This is YOUR comments community. Stay civil, stay constructive, stay on topic. Please familiarise yourself with our comments policy here before taking part.
Leave a Comment
    Install the app to use these features.
    Mute Hilary McDuffy
    Favourite Hilary McDuffy
    Report
    Apr 24th 2013, 7:31 PM

    The RTE click at it again,

    56
    Install the app to use these features.
    Mute Eamonn Bolger
    Favourite Eamonn Bolger
    Report
    Apr 24th 2013, 7:36 PM

    Yep

    30
    Install the app to use these features.
    Mute Gerri McCaffery
    Favourite Gerri McCaffery
    Report
    Apr 27th 2013, 12:24 AM

    Why do you say that Hillary? The guy taking over from him is an outsider, so is the new Head of News.

    1
    Install the app to use these features.
    Mute Paul Dempsey
    Favourite Paul Dempsey
    Report
    Apr 24th 2013, 10:37 PM

    So basically the headline here could’ve read: “Man moves desk.”

    47
    Install the app to use these features.
    Mute Marko Burns
    Favourite Marko Burns
    Report
    Apr 24th 2013, 8:14 PM

    They should just close it down and save a fortune. Would anyone actually notice anyway?

    46
    Install the app to use these features.
    Mute Irish Red
    Favourite Irish Red
    Report
    Apr 24th 2013, 9:39 PM

    Nope

    14
    Install the app to use these features.
    Mute Eamonn Bolger
    Favourite Eamonn Bolger
    Report
    Apr 24th 2013, 10:07 PM

    @Marko – no…..only their paymasters.

    4
    Install the app to use these features.
    Mute Peter Daly
    Favourite Peter Daly
    Report
    Apr 24th 2013, 8:24 PM

    Typical RTE Club.
    Merry go round Jobs for the Boys.
    No imagination and costing us a fortune .

    45
    Install the app to use these features.
    Mute Stephen murphy
    Favourite Stephen murphy
    Report
    Apr 24th 2013, 8:26 PM

    Was the job advertised?

    27
    Install the app to use these features.
    Mute Little Jim
    Favourite Little Jim
    Report
    Apr 24th 2013, 10:54 PM

    I think they asked Bill but he’s busy with some film thing.
    That’s advertising, right???

    12
    Install the app to use these features.
    Mute Clodagh O'Donovan
    Favourite Clodagh O'Donovan
    Report
    Apr 25th 2013, 12:32 AM

    It was actually. I spotted it on their website a while back.

    7
    Install the app to use these features.
    Mute Fussy Galore
    Favourite Fussy Galore
    Report
    Apr 24th 2013, 10:30 PM

    John McMahon resigns today and the radio listenership figures are released tomorrow. I presume that 2FM didn’t perform well in the listenership figures. Only in RTE could a person do a bad job and get moved to another area. No doubt, John McMahon is earning the same wage in his new job !

    26
    Install the app to use these features.
    Mute Michael Lee
    Favourite Michael Lee
    Report
    Apr 24th 2013, 9:38 PM

    I’d like to see Aidan Leonard take on the new role as head of 2 FM & run it along the lines of Smooth Radio/Capital Gold in the UK. Those two stations are proving to be Very Successful Operations in the UK Broadcasting Market. The current problem with Irish Independent Radio with the exception of Classic Hits 4 FM, Sunshine 106.8 FM is that, they all sound exactly the same.
    Bland, Formatted & Boring. So hopefully, the Power’s that be in RTE will Completely Overhaul & Re-Imagize 2 FM for the sanity of the Irish Listening Radio Public.

    20
    Install the app to use these features.
    Mute Marko Burns
    Favourite Marko Burns
    Report
    Apr 24th 2013, 9:44 PM

    Hey I’d love to see it as an Irish 6music but that is very bloody unlikely given RTE are still swamped in Smashy and Nicey’s….We’re still waiting for that Radio1 cull of dead wood they had in the 80s, over here.

    14
    Install the app to use these features.
    Mute Gerri McCaffery
    Favourite Gerri McCaffery
    Report
    Apr 27th 2013, 12:27 AM

    Re-imagize? Is that English?

    1
    Install the app to use these features.
    Mute David Corrigan
    Favourite David Corrigan
    Report
    Apr 25th 2013, 12:12 AM

    There’s a 2fm?

    18
    Install the app to use these features.
    Mute Keith Flood
    Favourite Keith Flood
    Report
    Apr 24th 2013, 8:52 PM

    6 comments = shit news

    16
Submit a report
Please help us understand how this comment violates our community guidelines.
Thank you for the feedback
Your feedback has been sent to our team for review.

Leave a commentcancel