Written answers

Tuesday, 30 January 2018

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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91. To ask the Minister for Finance if the debt levels of the State's largest landlords and other large property funds operating here will be examined to determine the risk to the property market and the wider economy. [4315/18]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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My Department continually monitors developments in both the residential and commercial property sectors. This includes tracking investment, transactions, prices and the profile of property ownership.

In relation to the residential rental market, ownership is diverse, fragmented and remains dominated by small-scale landlords. According to the Residential Tenancies Board almost 70 per cent of landlords have just one tenancy while over 91 per cent of landlords have just three or fewer tenancies. In fact, the RTB estimate that as of May 2017 the top 20 landlords – large professional landlords including corporate vehicles, Real Estate Investment Trusts, investment funds and individuals – accounted for less than 3 per cent of residential tenancies.

This highly dispersed ownership structure limits any potential spillover effects on the property market from a credit event in one of these companies. This is even more so the case in the wider economy. Furthermore, in the case of REITs they are restricted, under legislation, to a maximum of 50 per cent gearing, further minimising risk in the sector.

In respect of commercial property funds, the Central Bank is responsible for the authorisation and supervision of all investment funds established in Ireland. Nonetheless, my Department will continue to monitor the profile of ownership and all other pertinent issues in both the residential and commercial property sectors.

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