The party is today tabling a new motion calling for stamp duty on the ‘bulk purchase’ of homes to rise from 10% to 17%.
It comes less than two years after the Government raised the stamp duty on the purchase of 10 or more homes from 15 to 10%.
Housing experts have warned that many funds have been quite happy to pay the extra funds in the years since, with bulk purchasing continuing around the country.
“We saw recently with Belcamp Manor that 85% of a residential development, which was originally for the owner occupier market, was snapped up by a fund,” he said.
“Those homes will now be rented out for over €3,000 a month which is not what our housing system needs at the present.
“These funds don’t pay tax on rent roll or they don’t pay capital gains tax.
“They do push up the prices of houses and they do charge extortionate rent – we want to put an end to it.”
Other outcomes
Deputy Ó Broin noted there were other possible outcomes to what happened with Belcamp Manor.
“What’s very interesting is the developer said he could have sold it to the local authority where it could have been used for social housing or affordable purchase or affordable rental – but I suspect he got a better price,” he said.
“What that does to our housing system is it means a significant number of homes - about 10% of properties at the moment - end up going on the rental market for exceptionally high prices to a fund that doesn’t pay tax.”
Rebuttal
Financial advisor and analyst Karl Deeter said Sinn Féin’s motion going before the Dáil today was “driven by news stories”.
“It should be based on facts,” he said.
“We already have a 10% tax which is pretty high; calling for 17%, which is a made-up number, is non-factual.
“What that’s basically saying is look, we want something to happen, it’s not happening the way we want, let’s just pick a number and go there.
“There’s no data to support 17%, there’s no evidence, there’s nothing.”
Karl Deeter is seen in 2014. Picture by: Sam Boal/RollingNews.ieMr Deeter said he has problems with some other party policies too.
“It’s not easy to articulate but a lot of Sinn Féin policies are not easily interpreted beyond the soundbite,” he said.
“They want to scrap the help-to-buy, a scheme that’s helped 40,000 homebuyers, and want to bring house prices in Dublin to €300,000.
“A lot of things people say they want or are calling for is difficult to get behind because what they are trying to do is crash the whole sector or certain sections of the sector.”
The Government has indicated it will be opposing today's motion to increase Stamp Duty to 17%.
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Main Image: Sinn Féin spokesperson on housing, Eoin Ó Broin, speaking to media on the plinth outside Leinster House in September 2021. Picture by: Sam Boal / RollingNews.ie
