Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

Non-household buyers comprise a certain number of cohorts. We can get this information, although it will not be as accurate as what Revenue will provide in March following its analysis. We know what local authorities and approved housing bodies, AHBs, have bought. If we strip them out, we find that the figure has not reduced substantially. REITS and IREFs are hoovering up the market and, consequently, pushing up prices. We want the Minister of State to understand the problem in the first place and to get with it. We have unleashed these fund structures onto unassuming first-time buyers whom they are outbidding in the market.

This is not just coming from the left.

Merrion stockbrokers said the Government should consider penalising property investors to stop first-time buyers being priced out of the market. In its latest quarterly economic outlook, the broker says those who want a house to live in should be given precedence over those who are in it for purely investment purposes and looking to make a quick buck. Investors are the main drivers of cash sales in the Irish property market, which account for more than 50% of transactions. In its report, Merrion stockbrokers warned there was now a shortage of every type of housing and that the crisis was likely to get worse unless urgent action was taken. With regard to the REITs, the tax efficient structures the Minister of State talks about, one has set new record monthly rents of €2,570 in its Maple scheme in Dublin despite the tax incentive structure that it has. It is not right. I could use stronger language. The fund is not in it to provide houses; that is a by-product of what they are doing. They are in it to ensure they maximise the returns for their investors. Our focus needs to be on Irish citizens. We have evidence, which will undoubtedly become clearer in a number of months, that we will still see these types of structures out-purchasing first-time buyers in Dublin when we strip everything else out of it. That is an issue. Even if the figures were reduced to 30% instead of 42%, it will still be an issue. We have to stop this. If there was plenty of supply, there would not be a problem. I would like to see penalties; I support what Merrion stockbrokers said. The amendment is very clear. It asks for "a report on the impact that Irish Real Estate Funds and Real Estate Investment Trusts are having on residential property prices in the State". It is to be done within six months. Revenue will have figures for us in March. If the Government wants to extend that to eight months, we will do it on Report Stage, but there should be a report done on this because it is a major issue.