There's been calls for the government to ban institutional investors buying up new-build homes.
It comes amid reports of investment funds purchasing the vast majority of new developments before they even come to the market.
In 2019 95% of new build apartments were sold to institutions and investors.
That's according to the Construction Industry Federation.
Social Democrats Housing Spokesman Cian O'Callaghan says this is still happening, and needs to be stopped:
"I think we should be doing what's done in Germany."
"In 2007 they simply banned residential estate investment trusts from buying up homes or apartments."
Tánaiste Leo Varadkar takes a different view:
"The solution isn't to try to ban some types of housing, or ban types of housing investment."
"It might be the case that there are too many investments funds, and they're too active in Dublin."
"But that doesn't mean there's no place for them at all."
435 apartments in Ashtown Dublin 15 were sold off en masse to a foreign investment company based in Germany.
None will be available for first time buyers.
In 2019 95% of apartments were sold to institutional investors
I raised this issue with the Tánaiste in the Dáil today 👇 pic.twitter.com/RRpf1vjrFx— Cian O'Callaghan T.D. (@OCallaghanCian) April 22, 2021
Starter Homes Proposals In The Pipeline
The government is working on proposals to reserve a certain amount of new builds for first time buyers.
But Sinn Féin's Eoin O'Broin says that's not enough.
"I would much prefer to close down the excessive tax relief," he says.
He believes that'd be a much more effective way to make sure high yield short term investors are squeezed out.
There's mixed views within the Department of Housing.
So some are arguing that many homes, even if they're rentals, wouldn't get built without institutional investment.
