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Dáil Éireann Debate, Thursday - 28 April 2022

Thursday, 28 April 2022

Questions (9)

Mick Barry

Question:

9. Deputy Mick Barry asked the Minister for Finance if he will support measures to levy corporate landlords' profits to assist in funding social and affordable housing in view of the level of profits and the dominant position of corporate landlords; and if he will make a statement on the matter. [12111/22]

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Written answers

This Government is providing record levels of State investment for all forms of housing. Housing for All is the Government’s plan to increase availability and affordability of housing, and to create a sustainable housing system into the future. This year, €4 billion of Exchequer funding, supplemented by Land Development Agency funding and Housing Finance Agency lending, will be made available to deliver 9,000 new-build social homes and make 4,130 homes available for affordable purchase and Cost Rental. Over 300,000 new homes will be built by 2030, including a projected 54,000 affordable homes for purchase or rent and over 90,000 social homes.

However, Government expenditure alone cannot meet the projected housing needs in the State. Investment by large-scale corporate landlords is critically important to generating additional supply and improving affordability. The Deputy’s proposal of an additional levy on corporate landlords' profits could act as a deterrent to the crucial participation of non-bank finance in the housing market. It should be noted that much of the investment by these large scale landlords is in the form of forward commit transactions - that is, the provision of capital to fund the construction of new dwellings or binding purchase contracts to enable financing - thereby directly supporting additional supply.

Notwithstanding their increased activity in the property market, it must also be acknowledged that institutional investors still account for a relatively small share in the context of the wider residential housing market, far below a dominant market share. According to CSO data, the Real Estate sector (a close proxy for institutional investors) which includes property funds and real estate investment trusts, accounted for just 3% of the purchases of all dwellings in 2020 and 6% of the purchases of new dwellings. According to CBRE, institutional investors owned approximately 20,000 properties in 2020, accounting for less than 1% of the total housing stock.

The relevant Government Departments will, on a bi-annual basis, assess the adequacy of funding available from all sources - including the domestic and international banking sector, capital markets and international capital - to complement public investment in order to meet the demand for homes across the various tenures.

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