Deeter: Plans To Ban Bulk-Purchase Of Homes By Funds Won't Apply If Planning Permission Is In Place.

Cabinet will consider proposals tomorrow to make 50% of new homes available for first time buyers.

Plans to tackle cuckoo funds bulk-buying homes won't apply to housing developments which have already been granted planning permission, according to a financial analyst.

Housing Minister Darragh O'Brien will bring proposals to Cabinet tomorrow which will make half of the homes in a future estate available for first time buyers.

The government has faced calls to tackle cuckoo funds from buying up entire estates.

It emerged yesterday that the State has invested in a so-called cuckoo fund which bulk-bought hundreds of new homes in Kildare.

The Business Post reports Urbeo was given €60 million investment by the State in 2018.

The following year it bought large parts of two Maynooth housing estates.

Financial analyst Karl Deeter fears plans to tackle the funds could actually impact negatively on supply:

Making new homes 50% first time buyer based on density will create a 2 tier housing society (apt=renter), but at 35pha (below the 50pha threshold) it also means the 400 home SHD in the ministers own back yard will be impacted - keeping those pesky renters out. Cheer if you like+

— karldeeter ⭐ (@karldeeter) May 16, 2021

While a Labour Senator says people who want to buy apartments are also being priced out of the market by investors.

Rebecca Moynihan wants a crack down on investment funds buying housing estates to also include apartments.

Senator Rebecca Moynihan says the problem's been getting worse:

I hear the government and state are out spinning that these Maynooth homes were "forward financed" by funds. We already debunked this claim.

The timelines don't add up. Urbeo was set up in Dec 2018. These homes were already under construction before the fund was even founded https://t.co/tHngAI3Goi

— Killian Woods (@killianwoods) May 16, 2021

Builders says it will take three years for a new plan aimed at helping first time buyers to have any impact.

Irish Home Builders Association director James Benson says change will take time.

There's been calls for the Ministers for Housing and Finance to appear before the Dáil to explain why the state invested public money in cuckoo funds, which purchases scores of homes in Maynooth.

Yesterday the Business Post reported state funds had been used to buy up houses before they reached the market.

Housing Spokesman for the Social Democrats Cian O'Callaghan has written to the Dáil's business committee calling on Ministers Darragh O'Brien and Paschal Donohoe to appear before the Dáil on the issue:

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