Ireland must look at measures to curb ‘buy to rent’ schemes – Doherty
Sinn Féin Finance Spokesperson Pearse Doherty TD has said measures must be examined to curb international investors buying up whole new building projects for the purposes of renting them out. He said first time buyers and others must not be permanently priced out of what limited supply there is by wholesale investors.
The Donegal TD said:
“Today, we hear of yet another housing development sold before it is even built to the State’s largest landlord, I-Res. This type of fund enjoy very favourable tax benefits and are hugely profitable as we can see from the fact that their Chief Executive was awarded a 100% bonus of €330,000 last year.
“This is an intolerable situation where the State is relying on international capital to provide basic services, such as housing, while allowing these same funds pay little tax.
“Ireland is not the only place facing this type of imbalance in the market. I note Amsterdam has announced it intends to put in place a ban on new houses being bought for the purposes of renting them out. While that may be a different challenge in terms of tourism, it is that type of emergency measure needs to be fully examined. We cannot allow a situation to develop where young workers and families are forced to rent because they cannot compete with funds buying up whole apartment blocks who are free to set rent outside the caps in the case of new housing.
“The long term economic and social consequences for the Irish people are deeply worrying. A small few cannot be allowed control the housing market, making mega profits while the majority are forced to compete to rent forever and a day. Legislative, tax and all other measures must be put on the table as soon as possible.”