Neale Richmond (Dublin Rathdown, Fine Gael) | Oireachtas source

I move amendment No. 1:

To delete all the words after "Dáil Éireann" and substitute the following: "welcomes:

— the introduction of measures in 2021 to disincentivise the bulk purchasing of new homes by investment funds, including a higher 10 per cent stamp rate for certain bulk purchases of residential properties and planning guidelines to restrict the bulk purchase of houses for planning applications lodged following their introduction in May 2021;

— that since the introduction of these measures, the increased level of stamp duty has applied to less than 2 per cent of total new dwelling completions;

— the Section 28 Guidelines for Planning Authorities 'Regulation of Commercial Institutional Investment in Housing' which aim to provide an 'owner-occupier' guarantee by ensuring that new 'own-door' houses and duplex units in housing developments can no longer be bulk-purchased by institutional investors in a manner that causes the displacement of individual purchasers or social and affordable housing, including cost-rental;

— that at the end of Q4 2023, planning permissions which had the 'owner-occupier' guarantee attached amounted to 39,900 homes with an owner occupier guarantee since the guidelines were introduced in 2021; and

— that the Government is committed to ensuring that newly built houses are available to first time buyers and owner-occupiers and that the Government will continue to examine how this can be best achieved; and

acknowledges:

— the extensive range of measures included in the Programme for Government: Our Shared Future, building on the initiatives already undertaken and in progress, which will be brought forward to support individuals and families to access affordable housing;

— that for 2024, the Government set forward a record €5.1 billion budget for capital investment in housing;

— that Budget 2024 committed to deliver 9,300 new-build social homes and to make available 4,130 homes for affordable purchase and Cost Rental;

— the investment of over €136 million in the Urban Regeneration and Development Fund, to unlock development in cities and towns around the country this year;

— the Government's commitment to putting affordability at the heart of the housing system;

— the extension of the Help to Buy Scheme until the end of 2025;

— the most comprehensive legislation dealing solely with affordability in the history of the State through the Affordable Housing Act 2021;

— the key elements of the Affordable Housing Act 2021, encompassing local authority-led affordable homes, Cost Rental units, the Affordable Purchase Shared Equity Scheme and expanding the provisions made under Part V of the Planning and Development Act 2000;

— the Land Development Agency Act 2021 as a seminal change in how we manage public land and strategic planning; and

— the implementation of the Housing for All: A New Housing Plan which sets out a comprehensive new vision for housing in Ireland, putting affordable home ownership back at its heart with ambitious multi-annual funding, as demonstrated through results including:

— 29,634 new homes commenced in the first 11 months of 2023, a 17.7 per cent increase on the same period in 2022;

— 8,452 new homes completed in Q3 of 2023, a 14.4 per cent increase on the same three months of 2022;

— a record 22,443 homes completed in the first nine months of 2023, an 8.9 per cent increase on the same period in 2022 and the highest number of completions recorded for the first three quarters of any year since the Central Statistics Office data series began in 2011;

— that 9,662 dwelling units were granted planning permission in Q3 2023, an increase of 43.3 per cent on Q3 2022; and

— the highest number of owner occupier homes being purchased in years despite ideological arguments from opposition parties.".

I am taking this on behalf of the Minister, Deputy Michael McGrath. The Government is opposing this motion. However, I want it to be clear that the Government takes the issue of the bulk purchasing of property seriously. We are taking steps to address this and to maximise home ownership among individuals. Home ownership is, without a doubt, the top priority for this Government, with every Department playing a role in meeting our housing goals. The work we are putting into housing is bearing fruit.

It is important to note the fact that in housing, private individuals and households account for 80% of all housing transactions in the year prior to November 2023. Some 470 first-time buyers are buying their homes every week. We are building more homes, with almost 30,000 homes built in 2022 and a similar number for 2023 to be confirmed in the coming weeks. More importantly, we are helping people to buy homes. We introduced the first home shared equity scheme and we extended the help to buy scheme to the end of 2025, which, to date, has helped over 40,000 first-time buyers in the purchase of their homes. We have significantly ramped up the construction of social and affordable housing, with unprecedented funding from the Exchequer.

I want to be clear that the Government is acutely aware that the bulk purchase of homes deeply affects aspiring homeowners, first-time buyers, workers, families and individuals across the country. That is why we have already acted to address this behaviour. We responded swiftly, with the introduction of a wide range of actions in 2021 to provide a disincentive on the bulk purchase of homes. In particular a higher 10% rate of stamp duty was introduced by the Minister for Finance in 2021 on certain bulk purchases of residential properties. This was intended to discourage the purchase by institutional investors of all, or a significant proportion of, residential housing estates, thus denying first-time and other buyers an opportunity to purchase a home. The 10% rate is intended to provide a significant disincentive to this practice. Since the introduction of these measures the increased level of stamp duty has applied to less than 2% of total new dwelling completions. The standard rates of stamp duty applying on the acquisition of residential property are 1% on values up to €1 million and 2% on values exceeding €1 million. Stamp duty legislation provides for a higher 10% rate of duty to be charged on the acquisition of individual residential properties, where a person acquires at least ten such properties during any 12-month period. The 10% rate of stamp duty applies to houses and duplexes, but not to apartments. This rate was introduced by financial resolution on 19 May 2021 and is provided for by section 31E of the Stamp Duties Consolidation Act 1999. The 10% rate is intended to provide a significant disincentive to this practice.

In addition, the Government has committed to introducing a form of owner-occupier guarantee, which would enable local authorities to specify the proportion of houses and duplexes in a development for owner-occupiers. In support of this commitment, the Government introduced a series of measures in May 2021 designed to prohibit the bulk buying of houses and duplexes. This included the section 28 guidelines for planning authorities, Regulation of Commercial Institutional Investment in Housing, to planning authorities, which aimed to prevent multiple units being sold to a single buyer. The section 28 guidelines aim to provide an owner-occupier guarantee by ensuring that new own-door homes and duplex units in housing developments can no longer be bulk purchased by institutional investors in a manner that causes the displacement of individual purchasers or social and affordable housing, including cost rental. The guidelines included requirements that a new form of condition be inserted in applicable new planning permissions. All houses would have to be made available for sale and for first occupation by separate, individual households for a period of years after completion of the home. The guidelines exempt housing to be provided for social or affordable purposes from this requirement. If, after a period of two years, the local authority is satisfied that, despite reasonable efforts, a market has not emerged, the condition will lapse. At the end of quarter 4 of 2023, planning permissions which had this condition attached amounted to 39,900 homes with an owner-occupier guarantee since the guidelines were introduced in 2021.

The Government has also responded to challenges in the housing market through Housing for All. Housing for All is the Government’s plan to boost the supply of housing to 2030, to increase availability and affordability of housing, and to create a sustainable housing system into the future. Its aim is for everyone to have access to housing to purchase or rent at an affordable price, built to a high standard, and located close to essential services. It sets forward a comprehensive vision for housing in Ireland which puts affordable home ownership first and foremost. The updated action plan for Housing for All was published on 14 November 2023 and sets out 30 priority actions to boost housing supply. Other priority actions include the development of revised affordable housing strategy, the ongoing viability issue and the promotion of innovation and capacity building in the construction sector.

This year €4.1 billion of Exchequer funding, supplemented by Land Development Agency funding and Housing Finance Agency lending, will be made available to deliver 9,300 new-build social homes and make 4,130 homes available for affordable purchase and cost rental. Through the plan’s record investment by the State in social and affordable housing, which will boost supply, supports for people to buy or rent affordable homes, as well as reforms of rental protections, planning, land management, social housing and other areas, we are addressing the challenges people are facing in accessing affordable housing to rent or buy.

With budget 2024, the Government additionally brought forward a record €5.1 billion budget for capital investment in housing. This includes €2.6 billion in Exchequer funding, €978 million in Land Development Agency funding and €1.5 billion in Housing Finance Agency funding.

The Government has consistently committed to putting affordability at the heart of the housing system through multi-annual funding via Housing for All. More homes are being built and bought than in a generation. The latest monthly data on the number of commencements notices shows that 3,087 new homes were received by Building Control Authorities in November 2023. This represents an increase of 29% on the number of new homes commenced in the same month of the previous year. A total of 21,634 homes were commenced in the first 11 months of 2023. This is a 17.7% increase on the same period last year.

The latest CSO data on planning permissions show that, nationally, 9,662 units were granted planning permission in the third quarter of 2023, an increase of 43.3% on the third quarter of 2022. Residential planning permissions granted for the period January 2023 to September 2023 increased by 13% on the same period in 2022.

According to a recent report from Euroconstruct, an independent construction market forecasting network active in 19 European countries, construction output in Ireland is forecast to grow at the strongest rate among these countries. The report indicates that Irish construction output expanded by 3.2% in 2023 and will expand by 4.4% in 2024. It suggests that Ireland is bucking European trends, with total construction activity in Europe expected to fall by 1.7% in 2023 and 2.1% in 2024.

The Government is committed to ensuring that newly built houses are available to first-time buyers, owner-occupiers, workers and families, and we will continue to examine how this can be best achieved. Therefore, taking into consideration the results seen through Housing for All to date, the Government’s counter motion is proposed for consideration.

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