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Cabinet To Debate Plans To Block Funds Bulk-Purchasing Homes.

Stock image: Pixabay

Moves follow the purchase of 80% of Maynooth housing estate.

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 80% of Mullen Park, Maynooth.

Our Political Correspondent Seán Defoe reports:



"The government approach will come in two parts.

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

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

This is to ringfence a portion of developments that can't be bought by institutional investors.

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 doesn't want to scare these funds off entirely, believing they have a role to play in the likes of apartment buildings.

So 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. "

 

Economist Jim Power reserving half of new developments in housing estates for first-time buyers or owner-occupiers won't solve the housing crisis:

The cost of building a home remains significant and needs to be sorted before affordable housing, according to a developer.

Michael O'Flynn is Managing Director of Flynn Group - he says there are still a lot of costs associated with constructing the homes:

It emerged on Tuesday lunchtime that changes to the tax treatment of property investment funds could come into effect at midnight with a possible late-night Dáil sitting on the cards.

The purchase of 80% of homes in Mullen Park, Maynooth, has prompted the reform.

Cabinet Ministers will hold a second meeting this evening to deal exclusively with the housing issue.

Our Political Correspondent Seán Defoe reports:

Speaking on Tuesday afternoon, the Taoiseach has said emergency measures aimed at tackling investment funds buying Irish housing will likely be passed on Wednesday.

Micheál Martin says the emergency measures will be rushed through the Dáil tomorrow:

Meanwhile TD Richard Boyd Barrett has said action needs to be taken to stop the State investing in cuckoo funds:

 

 

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