Dáil Éireann Debate, Wednesday - 24 January 2024
94. Deputy Pearse Doherty asked the Minister for Finance if he is considering increasing the 10% rate of stamp duty with respect to the bulk purchase of certain residential property; his views and the views of his Department on the effectiveness of the current rate, given the increased number of properties purchased which were subject to the 10% rate; and if he will make a statement on the matter. [3328/24]
View answerThe Government is acutely aware that the bulk purchase of homes deeply affects aspiring owner-occupiers and first time buyers. This is why we responded decisively with the introduction of wide range of actions in 2021 to provide a disincentive on the bulk purchase of homes. These actions are working.
Estimates, based on Revenue and CSO data, show that the higher stamp duty rate has applied to less than 1% of residential property transactions in the May 2021 to October 2023 period, and has applied to less than 2% of total new dwellings completed from when the higher rate applied.
The Government also introduced Section 28 Guidelines, which aim to provide an ‘owner-occupier’ guarantee by ensuring that new ‘own-door’ houses and duplex units in housing developments can no longer be bulk-purchased by institutional investors in a manner that causes the displacement of individual purchasers or social and affordable housing, including cost-rental. At the end of Q4 2023, planning permissions which had this condition attached amounted to 39,900 homes with an owner-occupier guarantee since the guidelines were introduced in 2021.
The Government has also responded to challenges in the housing market through Housing for All, which sets forward a comprehensive vision for housing in Ireland which puts affordable homeownership first and foremost. This year €4.1 billion of Exchequer funding, supplemented by Land Development Agency funding and Housing Finance Agency lending, will be made available to deliver 9,300 new-build social homes and make 4,130 homes available for affordable purchase and Cost Rental.
The Government has consistently committed to putting affordability at the heart of the housing system through multi-annual funding through Housing for All. More homes are being built and bought than in a generation. The latest monthly data on the number of Commencements Notices shows that 3,087 new homes were received by Building Control Authorities in November 2023. This represents an increase of 29 per cent on the number of new homes commenced in the same month of the previous year.
Through the plan’s record investment by the State in social and affordable housing (which will boost supply), supports for people to buy or rent affordable homes, as well as reforms of rental protections, planning, land management, social housing and other areas, we are addressing the challenges people are facing in accessing affordable housing to rent or buy.
The Department of Finance closely monitors the impact of stamp duty rates on the housing market. As always, all matters relating to taxation will be kept under review.
