Tuesday, 27 May 2014

Questions (36)

Pearse Doherty

Question:

36. Deputy Pearse Doherty asked the Minister for Finance if he is concerned that the acceleration of National Asset Management Agency disposals to investors may contribute to increasing rents as purchasers seek to maximise their returns. [23022/14]

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Written answers (Question to Finance)

I am advised that there is no evidence that NAMA is aware of to indicate that selling assets or loans to investors is a contributory factor to increased rents.  Market factors such as restricted supply, which NAMA is helping to address through a number of initiatives, and long-term average market rates weigh far more heavily on rents than the controller of the asset, who will generally seek what the open market is willing to pay.  In line with its statutory obligations to obtain the best achievable financial return for the State, NAMA has a general policy of maximising the return it seeks from assets securing its loans. Investors will generally seek to do the same, therefore the outcome should be no different regardless of whether those assets are held by NAMA or investors.