Bulk buying property to be tackled through planning process, Ryan says

almost 3 years in The Irish Times

Minister for Transport Eamon Ryan has repeated the Government’s determination to stop the practice of investment funds bulk-buying new homes, and said the issue would be tackled through the planning process.
Speaking on RTÉ radio’s Morning Ireland, Mr Ryan said: “We do have to stop it. We can’t have people being kept out of the market.”
It comes after senior figures confirmed on Wednesday that the Government will move to block investment funds from buying up entire housing estates, with discussions continuing as to how best to implement the policy.
Mr Ryan said that the Minister for Housing Darragh O’Brien was going to address the issue through the planning process, but different approaches would also be required as it was a complex issue. “I believe the best approach is planning,” he added.
Mr Ryan said the Government is committed to not allowing the housing market be dominated by investment funds who were freezing couples out of the market, but added that investors were needed for projects such as large apartment buildings and the State needed to operate cost rental schemes. This is in line with the belief in Government that investment funds should not be chased out of the market as they have an important role to play in providing funding for certain types of developments.
Mr Ryan said he did not believe the practice of bulk-buying houses in new estates was widespread, but the Government had to stop it before it became widespread. The housing market is not functioning as it is and other measures would be needed, he said.
Mr Ryan said the move could require legislation which would take time. This is echoed by some sources involved in the discussions, who fear the process could be fraught with legal difficulties.
‘Locked out’
The move comes after fierce Opposition criticism of the Government following reports that entire developments of family homes had been bought by investment funds, a trend that Opposition parties and housing campaigners said was squeezing families out of the market.
In a tweet, Sinn Féin leader Mary Lou McDonald said: “It is Government policy to incentivise and support private investment funds to buy up housing across the State. It is Government policy to keep a whole generation locked out of affordable housing.”
Both Taoiseach Micheál Martin and Tánaiste Leo Varadkar on Wednesday expressed their unhappiness with the practice, with Mr Martin telling the Dáil that it was “unacceptable” and “will be examined”.
But sources involved in behind-the-scenes discussions said the party leaders had taken the decision to bring the practice to an end and officials were examining ways of doing this.
Government sources briefed that they wanted investors to fund “extra builds” that would not otherwise take place. There is little opposition in Government to the funds financing large-scale apartment developments for rental in urban areas.
However, Ministers and senior officials have been alarmed by reports of entire housing estates being bought up, though there is legally nothing to stop the funds from doing so. One source said the funds were needed for their “original intention” but not for “plucking supply that is already there”.

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