Peter Burke (Longford-Westmeath, Fine Gael) | Oireachtas source

I thank the Deputy for raising this important matter. Members will be aware that what happened in Maynooth is not acceptable, as the Government moves quickly to address this issue. The Taoiseach was clear from the outset that the Government does "not want institutional investors competing with first-time buyers". He went on to say that, "Our priority is first-time buyers."

The actions taken yesterday by the Government are evidence of the priority we have given this matter and our commitment to levelling the playing field for ordinary people who rightfully aspire to owning their own home. I will return to this in a moment but in the first instance, I want to clear up any confusion that may exist between buy-to-rent and the recent bulk-buying of houses in Maynooth by institutional investors. For absolute clarity, let me state that the development in Maynooth did not go through the planning system as a build-to-rent development and, therefore, was not designed or planned as such. Concern around planning permission being allocated to build-to-rent is, therefore, not entirely accurate in this case.

The Maynooth issue has arisen as a result not of the build-to-rent application or planning permission but, rather, the standard-type planning permission with which we are all familiar. It was only after the planning process had concluded that the developer chose to sell all remaining units to an institutional investor whose intention to rent those units was not part of the original planning process. Prior to 20 May, if applicants or developers did not seek permission specifically for a build-to-rent development, they were still free to sell or rent any or all of the units, which included selling the units to anyone who wished to rent either one or all of the units. This is what gave rise to the issue of concern in the context of the Maynooth development.

I will summarise the issue and the way we addressed it. Yesterday, 19 May, saw the issuance of new ministerial guidelines under section 28 of the Planning and Development Act 2000, as amended, to address the regularisation of commercial institutional investment and regulations in certain housing developments. These guidelines will ensure new own-door houses and duplex units in housing developments are not bulk purchased by commercial institutional investors in a way that would cause the displacement of individual purchasers and-or social, affordable and cost rental units. The Minister, Deputy Darragh O'Brien, intends to bring further changes through in the Affordable Housing Bull 2021, which is currently before the Oireachtas, to enable local authorities specify a minimum percentage of these houses and duplexes solely for the purchase of owner-occupiers. Specific proposals will emerge in the coming weeks.

It is important for me to clarify the actions taken and that the reasons they were taken were different than those suggested by the Deputy in the question she posed. In that regard, I want to directly address the question posed and explain that the planning is not allocated. It is up to applicants or developers to seek planning permission specifically for build-to-rents, which permission has particular conditions and requirements attached. I will briefly summarise them. Chapter 5 of the Design Standards for New Apartments Guidelines for Planning Authorities addressed the relatively new and emerging build-to-rent sector and set out a number of key and distinct characteristics of this type of accommodation and relevant planning requirements. Build-to-rent projects are usually a single entity investment for a long-term rental undertaking comprising individual residential units within the development that are not sold off separately for private ownership and-or subsequent subletting individually, which is a key difference from the traditional housing development model. The guidelines provide for planning permission for specific build-to-rent developments to be sought from the planning authority. Where such permission is applied for, the proposed development must also include the provision for dedicated amenities and facilities, specifically for residents, in terms of communal recreational space and works spaces, as well as a range of other support services. My point is that there may be room for build-to-rent as envisaged and provided for in the planning guidelines while, at the same time, ensuring that safeguards are put in place to protect first-time buyers and owner-occupiers.

Perspective and balance are also important. Let us look at the data. Build-to-rent developments form a relatively small proportion of the planning applications lodged. As of February 2021, 48,397 residential units in total have been approved under the strategic housing development process, comprising 12,991 houses, 27,624 apartments and 7,782 build-to-rent units. Build-to-rent makes up 16% of the total residential units approved under the strategic housing development process. The amount of build-to-rent developments approved is currently, therefore, relatively small.

See this speech in context