Dáil Éireann Debate, Thursday - 17 November 2016
24. Deputy Mick Wallace asked the Minister for Housing, Planning, Community and Local Government his views on the figures released by the CSO at the end of September 2016, which showed almost one fifth of new housing purchases in Dublin over the past two years were made by investment funds and REITS; his further views on the effects this will have on both the rental market and the property market; and if he will make a statement on the matter. [35476/16]
Amharc ar fhreagraA lack of additional housing supply coming on stream over the past decade or so in the areas of strongest demand is one of the principal root causes of our current housing crisis. Activity by institutional and professional residential sector investment specialists such as Real Estate Investment Trusts (REITS) in purchasing housing and engaging in the building out of part completed schemes and commencing new housing projects is a positive signal of investment beginning to flow back into the housing sector to provide the housing that people need.
The acquisition and management of properties by professional Real Estate Investment Trusts (REITS) is one component part of a more sustainable, long-term property rental market for both investors and tenants. While commercial property investment has been a key focus for some of the REITs launched to date in Ireland, residential property also forms part of the sector's interest and exposure. It is expected that the sector will continue to develop over time and in so doing to increase the supply of professionally managed, good quality, secure and affordable rented accommodation.
Historically the private rented sector in Ireland has been largely made up of small-scale landlords, who will continue to provide the bulk of private rented accommodation. However, a more diverse sector, which includes institutional investors specialised in providing and managing larger scale residential rental projects, is more stable and less exposed to property market risk and volatility. Institutional investors can also help provide the range of tenancy options that households need across their lifecycles. Attracting large-scale investment in property has an important role to play in helping to deliver the professional high-standard rental sector that tenants deserve.
The forthcoming Rental Sector Strategy will outline more detailed proposals and policies to enhance the stability of, and supply to, the growing rental sector as a key element of a broader restructuring of the housing sector. Moreover, the Planning and Development (Housing) and Residential Tenancies Bill 2016, which commenced Second Stage in the Seanad yesterday, includes measures to prevent a future recurrence of situations where investors seek to serve tenancy termination notices on large numbers of residents in a single development in order to facilitate vacant possession and sale of the property.
