Micheál Martin has promised a crackdown on faceless foreign investment funds snapping up thousands of new housing units from under the noses of first-time buyers.
He was reacting after Sinn Féin leader accused him of facilitating “sweetheart deals” for the foreign funds to avoid paying taxes and outbid ordinary home seekers.
The Taoiseach said the mass purchase of homes by institutional investors is “unacceptable”.
The investment trusts have massive purchasing power and are outbidding ordinary couples, families and young single people looking to get a first home.
The so-called sweetheart tax deals that see them exempt from paying tax on their rent income and can also avoid many of the other taxes a regular companies must cough up.
Sinn Féin leader and the Social Democrats rounded on the Taoiseach during Leaders’ Questions in the Dáil today on the issue.
Sinn Féin leader Ms McDonald said: “The truth is that it is Government policy to incentivise and support these private funds in buying up housing across the State. Fianna Fáil and Fine Gael have rolled out the red carpet for them with a range of sweetheart tax advantages.
“These funds pay no corporation tax, no capital gains tax and minimal stamp duty, and they charge some of the highest rents in the State, on which they then pay no tax.
“This cushy regime gives significant financial advantages to wealthy investment funds.
“No person trying to buy a home could possibly compete with them.”
She added: “ People scrimp and save every cent to put themselves in a position to buy a home, but just when they think they are getting closer to that goal, another Government with another bad decision pushes their dream further away.”
The Taoiseach responded: “I will state unequivocally that the purchasing by institutional investors of completed housing estates is unacceptable and not consistent with Government policy.
“We do not want institutional investors competing with first-time buyers.
“Our priority is first-time buyers. Our priority is additional supply of housing.
“The cornerstone of our housing policy is to build 50,000 social homes over the next five years.
“It is the largest and most ambitious social housing programme in the history of the State, with 9,500 direct builds targeted this year and 12,750 social homes in total out of 25,000 houses overall this year.
“That is the bottom line insofar as this Government is concerned.”
Social Democrats co-leader, Catherine Murphy, said: “There is no mystery as to why these funds are outbidding ordinary buyers because they are being advantaged by the State.
“They pay no stamp duty, no capital gains tax and no corporation tax. I listened to the Minister for Housing, Local Government and Heritage yesterday talk about not doing anything radical.
“He was concerned about unintended consequences.”
