Minister for Housing Darragh O’Brien has acknowledged the new measures in the Government's housing plan are “not a silver bullet”.
Speaking on RTÉ Radio’s News at One, Mr O'Brien defended the measures saying they were aimed at levelling the playing field for first-time buyers.
When asked about the sale by the National Assets Management Agency (Nama) of a complex of 69 apartments in Donabate to a UK investment fund, Mr O’Brien said he did not run the Agency but added he would prefer if different arms of the State worked together.
The Minister said the situation would be kept under review and, if necessary, other measures would be introduced in the next budget.
Mr O'Brien also said he would bring further amendments to cement the percentage of developments that could be purchased by first-time buyers.
The measures will act as an effective deterrent for investment funds, he believes, adding the impact would be seismic as there were not just tax measures involved, but also planning laws.
“Fundamentally this is about encouraging home-ownership,” Mr O’Brien said.
Initiatives, such as the shared equity scheme, could help bridge the gap for first-time buyers, including those purchasing apartments, the Minister said. However, he admitted: “We do have to work on the viability of apartments.”
Mr O'Brien also said local authorities have been instructed that any planning applications from today will not allow the bulk sale of homes, meaning, by the end of the year, the new measures would be in effect for plans for houses and duplexes, but not apartments.
Earlier, Green Party leader Eamon Ryan said the measures put forward in the Housing Bill are only the beginning of the Government's plans, adding there will be a “real step up” in the purchase of land and the building of homes by the State.
This evening, the Dáil is expected to vote on increasing stamp duty by 10 per cent on certain multiple house purchases as a means to deter the bulk-buying of residential properties by investment funds.
Under measures agreed by the Cabinet on Tuesday night, the higher stamp duty rate will apply to the purchasing of more than 10 houses within a 12-month period, however, apartments will be exempt from the higher rate, as will purchases by local authorities and approved housing bodies.
