01 Jul 2022

Senator calls for ban on investment funds 'gobbling up homes in bulk'

Senator calls for ban on investment funds 'gobbling up homes in bulk'

Senator calls for ban on investment funds 'gobbling up homes in bulk'

A senator is calling for a ban on investment funds bulk-buying apartments in Ireland. 

Senator Rebecca Moynihan's call comes in the wake of a new report by Banking and Payments Federation Ireland (BPFI) released today. 

The report found the number of First Time Buyers (FTBs) aged 30 or under more than halved in the last 16 years, reportedly falling from 60% in 2004 to 27% in 2020. 

It also noted the current average age of FTBs in 2021 was 34 years old. 

According to Senator Moynihan, young people are paying the price for government's investor-led approach to housing.

Speaking on the issue, she said, "The housing crisis is worse than ever before. We have thousands of homeless people, extortionate rents, increasing house prices, a lack of housing supply and a generation of young people locked out of home ownership. All the while, investment funds are gobbling up homes in bulk before they even come on the market. 

"We need leadership and a change of tact when it comes to housing. It’s time to ban investment funds bulk-buying apartments and review the standards of Build-to-Rent apartments so they can be used as housing stock for generations to come. This will take guts from government to take on the vested interests who have rigged the housing system in their favour." 

Senator Moynihan said the BPFI report indicates more needs to be done to help renters and first-time buyers. 

She said, "The reliance on the private housing market has failed yet the government want to continue that policy of carrots for investors. Government keep telling us that there is ‘no quick fix’. A permanent ban on investment funds bulk buying homes would be a step in the right direction with immediate impact." 

Currently, the multiple purchase of ten or more residential houses in Ireland incurs a stamp duty charge of 10%. 

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