Tanaiste Leo Varadkar has insisted the government believes in home ownership as he faced intense scrutiny to put a stop to “bloodsucking” cuckoo funds locking first time buyers out of the market.
Housing Minister Darragh O’Brien is expected to bring forward proposals as early as next week to stop investment funds from buying up entire housing estates after it emerged that two investment funds have bought up hundreds of new houses in two estates, one in Dublin and one in Kildare, forcing first-time buyers to compete with institutional investors for homes.
In the Dáil on Thursday, Opposition parties pointed the finger at both Fine Gael and Fianna Fáil for the state of the housing market and how it is being controlled.
Social Democrats co-leader Róisín Shortall described the Government as a “circular firing squad” with Fianna Fáil TDs and Fine Gael TDs blaming each other for the housing crisis after TDs vented their frustrations at private party meetings on Wednesday night.
She said: “Fianna Fáil crashed the housing market the first time around and Fine Gael then let vulture funds loose on the carcass for a decade with tax incentives and fast track planning and now both parties have joined forces in government and have been destroying the housing market.”
Solidarity-People Before Profit TD Richard Boyd-Barrett described the behaviour of investment funds as a “rampage” by “bloodsuckers.”
He said former finance minister Michael Noonan had 65 meetings with “vulture funds” and invited them in to “commence the rampage.”
Sinn Fein’s Pearse Doherty said the government was “scrambling to contain the damage” they have caused.
He said: “Your government’s response to this over the last few days would suggest that this is something new, that it has fallen out of the sky.
“This has been happening for years and well you know it.”
The Donegal TD accused the Tanáiste of “facilitating” the issue with “your party’s policies, you have actually encouraged it, incentivised it through the taxation structure that these funds enjoy.”
He said: “Your party gave them the tax advantage, your party designed it with the support of Fianna Fáil.“You’ve created this situation where these international investment funds are snapping up family homes and locking first time buyers out of the market and that is the reality.”
He told the Tanáiste that now that the “horse is bolted, you’re scrambling to contain the damage that you’ve caused.”
In response, Mr Varadkar said he is someone who “strongly believes” in home ownership and “this said government that believes in home ownership.”
He claimed that in Ireland at the moment, somewhere between 60% or 70% of people own their home.
He said the government wants that for people in their 20s and 30s now.
However, he told the Dáil that investment funds have a role to play, arguing that many high-density developments in Dublin city would not have been built had they not existed.
He said that without those developments there would have been higher prices, rents, and homelessness figures.
The Tanáiste said what has emerged whereby investment funds have snapped up houses was not in line with government policy and not to “swoop” in and buy them up.
He said the Housing Minister is developing proposals as a solution to combat this.
Green Party leader Eamon Ryan said the government was determined to stop the practice of investment funds buying homes in bulk.
Speaking to RTÉ, Mr Ryan said the Housing Minister was going to address the matter through the planning process stating he believed that is the best approach.
