There were two stories over the weekend which really typify everything that is wrong with the Government's approach to housing. The Irish Mail on Sunday reported that State lender, Home Building Finance Ireland, has entirely financed the construction of 211 apartments in Clonsilla. It has not financed homes that will be owned by the State or apartments that will be leased on a cost-rental basis. These are apartments that have been block-bought by one of the biggest and wealthiest institutional landlords in the country, Urbeo. The State is entirely financing this deal but the ultimate beneficiary will be an investment fund charging sky-high rents for these apartments when they are completed.

Meanwhile, the Business Post has reported on an extraordinary intervention by another investment fund in north County Dublin, which is hoovering up starter homes in Castleview in Swords. Typically, these homes sell for between €200,000 and €350,000. Earlier this year, a three-bedroom, end-of-terrace home sold for a gigantic €1.7 million and another home in the estate went for a huge €850,000. On just one day in April, this fund, ICAV, bought nine homes in Castleview. Prices for seven of these homes did not reach the dizzying heights of €1.7 million but they were all sold for a premium of between €20,000 and €88,000 over the median market price.

Last year, the Taoiseach told the Dáil: "The Government does not believe that funds should be competing with owner-occupiers or first-time buyers in buying up houses that have already been built." Is he standing over that statement today? For a first-time buyer eager to buy a home in Castleview earlier this year who missed out, the Taoiseach's commitment to prioritise first-time buyers will ring hollow indeed. Despite his assurance that investment funds would not compete with first-time buyers, it is clear they continue to do so.

They are having a considerable distortive effect on the market. How are first-time buyers, or any ordinary buyer, supposed to compete with a fund that can pay such a premium for three-bedroom terraced homes? The funds are willing to spend so much because the State is entering into long-term lease agreements for these homes, which will see the funds' large investments handsomely repaid over 25 years.

Will the Taoiseach apologise for misleading the House when he stated that investment funds should not compete for homes with first-time buyers? Will he give a commitment that State funds will not be used to bankroll developments for investment funds? Will he act to stop investment funds from snapping up family homes that are desperately needed by first-time buyers and owner occupiers?

I thank the Deputy for raising these two important issues. The weakness and distortion in her presentation have to do with her use of the word that the two individual cases she has identified "typify" the Government's response. They do not typify the Government's response at all and she should know that well. By this I mean that the State itself is building and, through the approved social housing bodies, providing thousands and thousands of social homes and affordable homes as an overall proportion of the number of houses that are being built.

In 2021, non-household entities purchased 11,600 units, or 20% of the total units purchased, which was down from 22% in 2020 and 2019. When I say "non-household entities", this includes the State, approved housing bodies and private companies. The State accounts for the largest single share of purchases within the non-household category, at 32% of purchases by non-households. The institutional purchasers - this involves all units in terms of apartments - purchased just 9% of total units sold last year. First-time buyers accounted for 26% of all properties purchased in 2021. As I said earlier, more first-time buyers bought their first homes in the past 12 months than in any year since 2008. The State's purchases are largely concentrated in houses, with 66% of State purchases being houses.

Regarding Home Building Finance Ireland, HBFI, the Deputy will recall that, during Covid and as a direct response to the initial impact of Covid-19, HBFI launched a time-bound initiative - the momentum fund - to allow it to provide finance for larger prime residential projects that were experiencing difficulties at that time in accessing finance. This was an agile and time-bound response, which was in keeping with HBFI's mandate. It was a step-in initiative. The end date for the momentum fund approvals was 31 December 2021. As such, it does not typify, but it was a response that HBFI took at the time to try to make sure that supply continued and projects got finished. Overall, the only way we can resolve and make inroads into the housing issue is by supply.

In respect of the article in the Business Post, my understanding is that that was a fund that bought from a fund. It was not competing with first-time buyers in that case. Where units are already assigned to social housing with leases of 25 years, at the time of sale, these properties are required to remain in social housing for the entirety of their leases. Therefore, any subsequent sale of those properties would not be in competition with purchasers seeking a home, nor would it increase the cost to the State of leasing the units.

When this phenomenon was brought to the Taoiseach's attention a couple of years ago, he seemed completely unaware of it. Belatedly, the Government moved to stop the practice of funds buying up homes and put a limit on them.

Yes.

However, it is clear that the practice is still continuing in respect of houses. Regarding apartments, though, the State is on both sides, which the Taoiseach said should not be the case. The Housing Finance Agency is providing funding to bankroll developers in providing apartments and, in turn, the State is taking out long-term leases.

This is the most expensive way of providing housing. The Taoiseach said that this approach was going to end and that we were going to enter a new period. Yet, just in July, the Government established a €450 million fund for long-term leases. It is impossible for first-time buyers in Dublin to buy a new home. Obviously, because of prices, it is impossible for them to buy houses, and there are also no apartments for sale. Therefore, this situation is having a hugely distorting impact on the housing market.

I thank the Deputy. I call the Taoiseach to respond.

The Taoiseach needs to act and to honour the commitment he gave to first-time buyers.

It is not actually having a hugely distorting impact. The problem is that we are not building enough houses or apartments, full stop. The State-----

Why are developers not building apartments?

I ask the Deputy to look at the figures and be honest about this for once, and not to continually distort the debate about housing. It gets distorted as if the only players were institutional providers. They are not. They are minority players in the overall scheme of things in terms of the construction of houses. The State is the biggest actor, through social housing, affordable housing and a variety of financial mechanisms.

And long-term leasing.

Right across the board, the State is building the houses or contributing to affordability. We are not building enough houses. What I have noticed over the last two years is that the line of attack has been to pick one particular example or illustration and to endeavour to make it the norm in the narrative and presentation of how the housing situation stands. It is not that way at all, however. We need to be building 35,000 to 40,000 houses, in my view, at this stage. The population is going over 5 million, and is increasing. More than 70,000 people came into the country this year, with people returning home and coming here to work. We need more houses of all types. The attempts to exclude some will not help the overall effort.

Táimid ag bogadh ar aghaidh.

Why are the funds buying them?

The Deputy knows there is a limit on what they can do now. They cannot buy-----

I thank the Taoiseach. We are moving on. I call Deputy Nolan.