Róisín Shortall (Dublin North West, Social Democrats) | Oireachtas source

There were two stories over the weekend which really typify everything that is wrong with the Government's approach to housing. The Irish Mail on Sundayreported that State lender, Home Building Finance Ireland, has entirely financed the construction of 211 apartments in Clonsilla. It has not financed homes that will be owned by the State or apartments that will be leased on a cost-rental basis. These are apartments that have been block-bought by one of the biggest and wealthiest institutional landlords in the country, Urbeo. The State is entirely financing this deal but the ultimate beneficiary will be an investment fund charging sky-high rents for these apartments when they are completed.

Meanwhile, the Business Post has reported on an extraordinary intervention by another investment fund in north County Dublin, which is hoovering up starter homes in Castleview in Swords. Typically, these homes sell for between €200,000 and €350,000. Earlier this year, a three-bedroom, end-of-terrace home sold for a gigantic €1.7 million and another home in the estate went for a huge €850,000. On just one day in April, this fund, ICAV, bought nine homes in Castleview. Prices for seven of these homes did not reach the dizzying heights of €1.7 million but they were all sold for a premium of between €20,000 and €88,000 over the median market price.

Last year, the Taoiseach told the Dáil: "The Government does not believe that funds should be competing with owner-occupiers or first-time buyers in buying up houses that have already been built." Is he standing over that statement today? For a first-time buyer eager to buy a home in Castleview earlier this year who missed out, the Taoiseach's commitment to prioritise first-time buyers will ring hollow indeed. Despite his assurance that investment funds would not compete with first-time buyers, it is clear they continue to do so.

They are having a considerable distortive effect on the market. How are first-time buyers, or any ordinary buyer, supposed to compete with a fund that can pay such a premium for three-bedroom terraced homes? The funds are willing to spend so much because the State is entering into long-term lease agreements for these homes, which will see the funds' large investments handsomely repaid over 25 years.

Will the Taoiseach apologise for misleading the House when he stated that investment funds should not compete for homes with first-time buyers? Will he give a commitment that State funds will not be used to bankroll developments for investment funds? Will he act to stop investment funds from snapping up family homes that are desperately needed by first-time buyers and owner occupiers?

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