Michael McGrath (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 28 and 30 together.

As I set out in my response to an earlier question from the Deputy on this subject, the Government is acutely aware that the bulk purchase of homes deeply affects aspiring owner-occupiers and first time buyers, and has introduced numerous measures to address this. This has been addressed both through disincentivising bulk purchases, and through positive steps taken to increase the housing supply.

Revenue and CSO data show that the higher stamp duty rate has applied to less than 1% of residential property transactions between May 2021 to end-2023, and has applied to less than 2% of total new dwellings completed since 20 May 2021. Revenue data also demonstrates a yield of approximately €40 million has been collected in this category from 2021 to 2023.

As the Deputy is aware, Section 28 Guidelines were introduced by the Minister for Housing, Local Government and Heritage in 2021, which aim to provide an ‘owner-occupier’ guarantee by ensuring that new ‘own-door’ houses and duplex units in housing developments can no longer be bulk-purchased by institutional investors in a manner that causes the displacement of individual purchasers or social and affordable housing, including cost-rental. The most recent data indicates that from the introduction of these guidelines to December 2023, 40,827 homes were granted planning permission with conditions prohibiting the bulk purchase by, or multiple sale to, a single purchase.

The Government has also responded to challenges in the housing market through Housing for All, which is the Government’s plan to boost the supply of housing to 2030, to increase availability and affordability of housing, and to create a sustainable housing system into the future. The Government continued to fulfil this commitment through Budget 2024, which brought forward a record €5.1 billion budget for capital investment in housing. This includes €2.6 billion in exchequer funding, €978 million in Land Development Agency (LDA) funding, and €1.5 billion in Housing Finance Agency (HFA) funding.

The Government has consistently committed to putting affordability at the heart of the housing system through multi-annual funding through Housing for All. The latest CSO data on planning permissions shows that nationally, 41,225 dwelling units were granted planning permission in 2023, an increase of approximately 21% per cent from 2022. 11,181 residential planning permissions were granted for Q4 2023, an increase of 47% per cent compared to the Q4 2022 period.

Through the plan’s record investment by the State in social and affordable housing, supports for people to buy or rent affordable homes, as well as reforms of rental protections, planning, land management and other areas, we are addressing the challenges people are facing in accessing affordable housing.

Given the above mentioned measures the Government has taken against bulk purchasing of residential property, and taking into consideration the positive results seen through Housing for All, I do not have immediate plans to increase the rate and reduce the threshold at which the higher stamp duty rate on certain purchases of residential property applies. However, as with all areas of tax policy, stamp duty on bulk purchases of residential property will be kept under review throughout the annual budgetary process.