Pat Casey (Fianna Fail) | Oireachtas source

I agree with many of the sentiments expressed by Senator Higgins regarding the operation of REITs. The problem with the Finance Bill is that it leads one on to other issues of principle. At one time, REITs played a role in the market and were considered to be part of the housing solution but it has evolved into something bigger and is actually causing more problems than it is providing solutions. It is disappointing that we need REITs to come in to build apartments. We should be able to find ways in the economy of building apartment blocks. We should not need REITs to do it. That is the fundamental problem. If one is developing houses, one can sell five houses and then move on to building the next five or ten or 15, whereas with apartment blocks one must build them to scale and in their entirety.

Senator Higgins referred to the hollowing out of the city centre. I would not necessarily blame REITs for that. Rather, I would look towards the planning system and county development plans and see what we, as a society, are looking for in city centres. We looked to REITs to solve the issues in the rental market. Although Senator Gavan and I may differ on this issue, he will acknowledge that the vast majority of landlords, approximately 85% of them, own fewer than two properties and do not get the same breaks as do REITs, yet they provide a valuable source of accommodation for families and individuals. Before giving out about landlords, we must remember that between 85% and 90% of landlords own two properties or fewer. The RTB is clear that the relationship between small landlords and their tenants is much more beneficial and personal and has a much greater understanding of the issues tenants are going through than is the case with regard to some of the REITs and their tenants. The issue of REITs was looked at. I have questions regarding the role REITs play in the property market and the whole housing solution. The problem with speaking on the Finance Bill is that we get into other issues. I agree with many of Senator Higgins' remarks regarding REITs and their impact on the housing market.