Simon Harris’ call for a review of the bulk purchase of homes has been criticised by Mary Lou McDonald as a “spoof”.
The Taoiseach and Fine Gael leader said on Monday that he wants to see a review of the bulk buying of homes by institutional investors on both tax and planning matters.
He said that, despite action taken by the Government, which he called “helpful” and “important”: “I do still hear too many examples as I go around the country of perhaps gaps that need to be plugged in relation to this.”
Sinn Féin leader Ms McDonald said government efforts to deter the bulk buying of homes are “failing”, stating that “hundreds” of homes have been bought by funds since the 10 per cent stamp duty was introduced.
“Far from being deterred, property funds – vulture funds – were in fact emboldened,” she said during Leaders’ Questions on Tuesday.
“Bulk buying actually increased in the years after you introduced this measure. They know that they can offset the stamp duty by charging sky-high rents.”
She claimed the bulk buying of homes is “a direct result of government policy” and said Fine Gael “rolled out the red carpet for these funds with sweetheart tax deals” 10 years ago.
She said the “greedy and damaging practice” has happened repeatedly, and told the Taoiseach: “You shouldn’t have to go out on a canvass to tell you how bad it is out there.”
She branded comments from Mr Harris calling for “a review” of the bulk purchase of homes “simply spoof” and “spin”, and argued that “10% is not a deterrent”.
Mr Harris said “real” progress is being made, with 350 homes built every working day this year so far, and around 500 homes being bought every week.
“But the issue of bulk buying and bulk purchasing of houses is an issue that I want to see further action on.”
He added: “It’s government policy to prevent the bulk purchase of houses. We’ve already introduced a higher rate of stamp duty and we’ve already introduced new planning rules, but we’re continuously monitoring the situation to see if more needs to be done.”
He said the higher rate of stamp duty applied to less than 1% of residential property transactions between May 2021 to the end of 2023.
Ms McDonald responded: “If the Government’s response has been so effective, how is it then, Taoiseach, out on the canvass, that you are hearing these accounts of vulture funds snapping up family homes? Are the people out on the ground wrong, too?”
Mr Harris said: “It’s entirely possible, Deputy McDonald – though it might be a new one on you – to be able to report progress in an area of societal challenge and still wish to do more in that area”.
He said he sees “lots of progress when it comes to housing” as he travels across the country, and said the number of homes that have commenced construction this year – 32,000 – is higher than the total commencements last year.
According to the Department of Housing’s latest figures, a record 11,956 homes were commenced in the first three months of 2024, up 63 per cent on the same period of 2023.
“Less than 1 per cent of residential property transactions saw that higher rate of stamp duty – I want to see more,” he said.
Speaking at the Fine Gael launch of its European and local election manifesto on Monday, Mr Harris said he wants a review of the bulk purchase of houses by institutional investors.
“It’s clear from the Housing Commission report and our latest Housing For All quarterly report that we need private and public investment to address our housing stock. However, we will need to go further when it comes to the bulk purchasing of homes needed for first-time buyers. I intend to take more action in relation to that.
“The Government has already put in place the tax and planning measures to prevent the practice, but I’m committing in our manifesto today that we’ll take further measures to stop the bulk purchase of houses by institutional investors and our party passed a motion to this effect at our recent Ard Fheis.”
He added at a doorstep afterwards: “I’m pleased with a number of the measures the housing minister and the finance minister have brought in. I think they’ve been good, I think they’ve been effective, but I don’t think we can close our ears in relation to this.”
