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Plans to restrict bulk-buying of housing developments to go before Cabinet

Proposals to restrict investment funds block-buying new housing developments will go before Cabin...
Sean Defoe
Sean Defoe

06.33 18 May 2021


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Plans to restrict bulk-buying...

Plans to restrict bulk-buying of housing developments to go before Cabinet

Sean Defoe
Sean Defoe

06.33 18 May 2021


Share this article


Proposals to restrict investment funds block-buying new housing developments will go before Cabinet ministers this morning.

The Departments of Finance and Housing have been working on the measures since a public backlash to the selling off of an entire housing estate in Kildare.

The Government approach will come in two parts.

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One is on the planning end, where a certain amount of new developments will be reserved for the private market.

Talks were still continuing on Monday night as to whether this would be defined as first-time buyers or owner-occupiers.

This is to ringfence a portion of developments that cannot be bought by institutional investors.

A construction worker on the roof of a new home Picture by: Eamonn Farrell/RollingNews.ie

However, it can only apply to new planning applications - which means it will be years before the impact of those changes will be felt.

The measures are likely to be added to the Affordable Housing Bill currently passing through the Oireachtas.

The second is the taxation side, where a hike in stamp duty for investment funds buying property has been considered.

Tax breaks on the profits such funds make through rent and the sale of property were also being examined.

But the Government does not want to scare these funds off entirely, believing they have a role to play in the likes of apartment buildings.

The restrictions on them will be linked to housing density - something that could prove tricky to quantify in new, mixed development estates where there are houses and apartments.

Main image: Construction workers wearing hard hats on scaffolding working on a roof of a housing development in Naas, Co Kildare. Picture by: Eamonn Farrell/RollingNews.ie

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Affordable Housing Bill Bulk Buying Cabinet First-time Buyers Housing Estates Investment Funds Kildare New Developments

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