Paul Gavan (Sinn Fein) | Oireachtas source

I want to shine a light on the actual taxation situation. In 2019, tax paid by IREFs relative to pre-tax profits was 9.1%. That was less than the 25% paid by any other landlord or the 12.5% paid by any other company. Furthermore, as I said, they are entirely exempt from capital gains tax. We disagree with the Minister on this policy issue. We believe the tax advantage enjoyed by these funds is pricing struggling homebuyers out of the market and driving up rents. We also know these funds are, in the vast majority of cases, buying up properties subject to forward purchase agreements and not forward funding agreements, despite the commentary. These recommendations are calling for reports, as we have done every year. A report published in February 2019 by the Department of Finance entitled Institutional Investment in the Housing Market noted:

There is a risk that, should BTR investment continue at current growth rates, market forces would over the long-term create socio-economic polarisation in some urban areas. Under such a scenario average income earners would be priced-out of purchasing or renting from the private market ...

Is that not exactly what has been happening? It goes on to state, "there is a risk that at sufficient scale an institutional investor or group of investors could, over time, develop monopolistic or oligopolistic pricing power". That is a report by the Minister's own Department. It is very clear that is exactly what is happening. The Minister may be of the view the housing policies pursued in government over the past decade has been a roaring success. I am not. The power of investment funds within the housing market must be reined in. This threat has been recognised elsewhere. The Liberal Party has committed to measures to clamp down on the financialisation of the housing market in Canada. We have a different view of the success of Government housing policy and its impact on affordability. All this recommendation is calling for is a report.