Mick Wallace (Wexford, Independent)
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43. To ask the Minister for Housing, Planning, Community and Local Government his views on the growing proportion of new housing purchases made by investment funds and REITs, and the fact that financial companies now control 90,000 of mortgages and the effects of this on the housing and rental markets; and if he will make a statement on the matter. [2171/17]

Simon Coveney (Cork South Central, Fine Gael)
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A lack of additional housing supply coming on stream over the past decade or so in the areas of strongest demand is one of the principal root causes of our current housing crisis. Activity by institutional and professional residential sector investment specialists such as Real Estate Investment Trusts (REITS) in purchasing housing and engaging in the building out of part completed schemes and commencing new housing projects is a positive signal of investment beginning to flow back into the housing sector to provide the housing that people need.

The acquisition and management of properties by professional Real Estate Investment Trusts (REITS) is one component part of a more sustainable, long-term property rental market for both investors and tenants. While commercial property investment has been a key focus for some of the REITs launched to date in Ireland, residential property also forms part of the sector's interest and exposure. It is expected that the sector will continue to develop over time and in so doing to increase the supply of professionally managed, good quality, secure and affordable rented accommodation. Investments by REITs that increase the number of dwellings available in the rented sector are a positive development. That said, a diverse sector, which includes both institutional investors specialised in providing and managing larger scale residential rental projects and small scale and individual landlords, is inherently more stable and less exposed to property market risk and volatility.

Historically the private rented sector in Ireland has been largely made up of small-scale landlords, who will continue to provide the bulk of private rented accommodation. Institutional investors can also help provide the range of tenancy options that households need across their lifecycles. Attracting large scale investment in property has an important role to play in helping to deliver the professional high-standard rental sector that tenants deserve.

In cases where buy-to-let mortgages are sold on by the original lender, the rights and responsibilities of the landlord and tenant and the terms of the mortgage are unaffected.