New figures reveal the number of homes bulk-bought by investors has significantly increased over the past three years despite an additional 10% tax to discourage the practice by funds.
Data supplied to Sinn Féin’s finance spokesman Pearse Doherty by the Minister for Finance Michael McGrath show there were 623 properties bought by 16 investors in last year which resulted in stamp duty of €22 million.
The figure shows a 71% increase in the amount of properties bought in previous year, when 395 properties were bought by 15 investors with €14.3 million paid in stamp duty.
It is a 233% increase on 2021, the year in which the surcharge tax was introduced. That year there were 187 properties bought by 16 investors with €4.7m paid in additional stamp duty.
The additional tax means the investment funds which bulk purchase more than 10 residential units have to pay a 10% stamp duty.
In the parliamentary reply Minister McGrath said: “It is not currently possible to determine the number of newly built properties in respect of which the 10% rate of stamp duty tax has been paid.
He added: “In some cases it may have been charged on the sale of second-hand properties or properties sold by one institutional investor to another such investor.”
Pearse Doherty TD said: “Three years ago we told the government their proposals would not work.
“These new figures show that the purchase of family homes by vulture funds has accelerated.
He added “Over 1,200 homes have been snapped up by these funds. Last year alone, over 620 homes were bought from under struggling home buyers.”
He added that unless Sinn Féin proposals to increase the stamp duty were introduced funds will continue to buy homes which should available for families.
He said: “Government have a decision to make – they can allow this to continue or they can support Sinn Féin’s motion in the Dáil tonight to stop it.”
