Bulk buying of Dublin homes
Deputy Cairns raised a Dublin estate where an investment fund bought most homes and said the 10% bulk-purchase stamp duty has not been reviewed. The Minister said the matter is for Housing, acknowledged a review is needed, and will seek a timeline.
In January, an investment fund bought up 85% of the homes in a Dublin housing estate. Back then, the Minister for housing said-----
Comment on this
I am sorry, I could not hear the Deputy.
Comment on this
In January, an investment fund bought up 85% of the homes in a housing estate in Dublin. Back then, the housing Minister said that he would review the useless 10% stamp duty on the bulk purchasing of homes. Two months on, nothing has happened. The Government has not acted, and this week we have yet another report on the disastrous impact of vulture funds snapping up homes. According to the Central Bank, in 2021 alone vulture funds spent more than €1 billion buying up second-hand homes, which they then put up for rent at much higher rates than average. Investment funds should not be able to buy existing homes or apartments. Not only are they driving up house prices and rents but they are locking out first-time buyers. The Government recognised that the stamp duty needs to change. It has not yet. What was the result of the review and why is it taking so long?
Comment on this
This is a matter for the Minister for housing. I think he acknowledged in a debate in the last number of weeks that he needs to review this number to make sure there is an appropriate disincentive for bulk purchasing of homes. It is important to say that, I think, the figure is about 2% of homes that are being purchased by large investment funds as bulk purchases. It is important that we do not overstate the impact on the supply of homes. Having said that, the Minister has said that he is going to look at this issue and I will ask him to come back to the Deputy with a timeline on when he can make a decision on it.