Sharp rise in number of homes bought by investment funds
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The number of houses bought by investment funds has risen in recent years, despite Government moves to dissuade institutional investors from snapping up family homes.
Newly-released figures from the Department of Finance show that a total of 623 homes were bought by 16 investors in 2023, compared to 395 the year before and 187 in 2021.
Sinn Féin's finance spokesperson Pearse Doherty said the figures show the need for the Government to back a motion by his party aimed at increasing the stamp duty on investment funds.
In May 2021, the Government agreed to increase stamp duty to 10% on purchases of more than 10 houses in a bid to stop investor funds from blocking first-time buyers from securing a home.
However, the increased stamp duty was not applied to blocks of apartments and the following July, the Government was accused of a "stroke" by allowing funds avoid this rate if they rented the homes back to the State.
The figures show that the measure brought in over €41m in stamp duty for the exchequer.
Mr Doherty said the Government's measures did not go far enough and his party's motion in the Dáil to increase stamp duty to 17% on the purchase of houses by investment funds should be voted through.
“Figures released to me today by the Department of Finance show that since the Government’s half-baked measures were introduced, over 1,200 homes have been snapped up by these funds.
“These are more than 1,200 homes that should have been available to workers and families to buy.
“Last year alone, over 620 homes were bought from under struggling home buyers.
“Unless Sinn Féin’s proposals to stop this are introduced, funds will continue to snap up homes that should be available for workers and families to buy."
The Government's counter-motion says that the 10% rate kicks in for anyone purchasing 10 or more homes in a 12-month period.
It adds that the 2021 measure "has proven a significant disincentive".
It will also say that institutional investment in commercial and residential property is "critically important to generating the additional supply of homes" and institutional investors account for "a relatively small share of the residential property market, accounting for 9% of total purchases in 2022, and 4% of all houses".
Speaking during Leaders' Questions in the Dáil, Social Protection Minister Heather Humphreys said the overall percentage of homes being bought from under first-time buyers was "quite small".
"Planning guidelines were issued to restrict the bulk buying of houses and duplexes. A Section 28 guideline was issued to all the planning authorities which aimed to prevent multiple homes being sold to a single buyer.
"Planning applications from May 2021 are subject to those restrictions.
"It is important to say that since the introduction of those measures in 2021 the increased level of stamp duty has applied to 1% of the total new homes built. It is quite a small percentage of overall homes being built."
The Sinn Féin motion comes just days after 46 out of 54 houses at Belcamp Manor in Balgriffin in Dublin were bought for over €21.5m by an investment fund.
Ms Humphreys said that this planning application predates the May 2021 laws.