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Dáil Éireann Debate, Tuesday - 1 June 2021

Tuesday, 1 June 2021

Ceisteanna (259, 261)

Eoin Ó Broin

Ceist:

259. Deputy Eoin Ó Broin asked the Minister for Finance his views on whether the failure to include private mortgage to rent providers in the exemption from an increase in stamp duty on bulk purchases in the recently passed financial resolution places the conclusion of up to 200 mortgage to rent transactions with home for life at risk of collapse; if so, the action he plans to take to avert this risk; and the timeline within which he plans to act. [29359/21]

Amharc ar fhreagra

Gerald Nash

Ceist:

261. Deputy Ged Nash asked the Minister for Finance if his attention has been drawn to the impact of the recently announced changes to stamp duty in respect of the bulk buying by investment funds of houses on organisations active in the mortgage to rent sector (details supplied) and that are in the process of purchasing homes under the mortgage to rent scheme in order to lease back to distressed homeowners; if he has been in contact with the Minister for Housing, Local Government and Heritage with regard to identifying a way in which such organisations may be exempted from the new stamp duty regime under certain circumstances and informed by the way in which approved housing bodies have been exempted under the new system; and if he will make a statement on the matter. [29479/21]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I propose to take Questions Nos. 259 and 261 together.

On May 19th this year, the Dáil approved, by way of a Financial Resolution, a new higher stamp duty rate of 10% that will apply to the multiple purchase of houses.

I introduced this measure in response to the multiple purchase of residential units by certain institutional investors in the Irish property market. I share the widespread concerns that the activity of these institutional investors risks distorting the market for houses in the State and I recognise the difficulties that this has the potential to cause for first time buyers and others who wish to buy a family home.

I indicated at that time that as some multiple purchases of property are undertaken by bodies specifically for the purpose of providing social or affordable housing, the higher stamp duty rate will not apply in such instances e.g. Local Authorities, Approved Housing Bodies, and the Housing Agency. I also pointed out that other social or affordable housing arrangements would be considered as part of the legislation which will be brought before the Houses in the next few weeks to permanently underpin this Financial Resolution.

In relation to the Deputies specific question about whether private sector participants in the Mortgage to Rent (MTR) scheme will be exempted from the new higher stamp duty rate, I have been advised by the Minister for Housing, Local Government and Heritage that he wishes such an exemption to be provided for as part of the legislation required to put the stamp duty Financial Resolution on a permanent statutory footing.

Finally, my officials have been in contact with a major private sector participant and it is understood that the addressing of this matter through legislation over the next number of weeks should ensure that current mortgage to rent transactions are concluded satisfactorily.

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