Mary Fitzpatrick (Fianna Fail) | Oireachtas source

I thank the Cathaoirleach for giving time to the House to debate my Commencement matter that calls for action by the Minister for Finance to increase the affordability and supply of housing for our citizens by introducing tax measures that will address the activities of private investment funds in the housing market. I specifically call for the Minister for Finance to end tax incentives for investment funds to facilitate the wholesale purchase of first-time buyer's homes, and ask him to apply a financial penalty to properties that are left vacant for more than six months in areas of significant housing need.

As the Cathaoirleach will know, I have raised this issue in the Seanad previously. I have discussed it with the Minister for Housing, Local Government and Heritage and the Minister for Finance. What is required is an all-of-government response. Since this Government was formed there has been an historic housing budget approved of €3.3 billion. There is also historic legislation that will have the State take the lead in the provision of affordable housing on State-owned lands. There is affordable housing both to purchase and rent that will provide affordability and security of tenure for our citizens. This is all very welcome along with the banning of co-living and the commitment to end the strategic housing development, SHD, process and review the build-to-rent model.

At the same time as the Government is taking all of this action to increase the supply of affordable homes, and improve the affordability and security of tenure for citizens, we and the State are being undermined by the activity of private investment funds that spend tens of millions of euro a week outbidding, outspending and gazumping first-time buyers, families, single people, approved housing bodies and, indeed, the State. The private investment funds have very deep pockets. Of course there is room for private investment in every market but we have a housing crisis, of which the Minister of State, Deputy Fleming, and the Government are aware. All of the efforts that we are making are being undermined when private investment firms purchase wholesale new-build homes that were designed and intended for home owners. As the private investment funds follow the money, so too must the Government and I urge the Minister for Finance to take action. I urge him to place a significant tax on the bulk purchase of new-build homes and introduce a tax on homes that have been left vacant for more than six months in areas that have a high demand for housing. We need to go further. Some of these measures can be dealt with in planning and I know that the Minister for Housing, Local Government and Heritage has committed to do that but planning changes will only affect new developments. We also need to improve security of tenure for renters, review the rent pressure zones, which I know that the Minister and Government have agreed to do, strengthen rent pressure zones and leverage the State's ability to fund the provision of affordable homes, to purchase or rent, on State-owned lands. As a Government, we must prioritise the provision of affordable homes for citizens. We must also take action to stop the undermining of all of that investment by private investment funds that can outbid, outspend and gazump the State and would-be homeowners.