Minister of State Neale Richmond has advocated for a twofold increase in tax levied on investment funds involved in mass property acquisition to potentially reach a 20% rate. During an interview on a Sunday radio show, he staunchly represented his party, Fine Gael, as the advocates of homeownership, and he disclosed that this tax escalation had been mildly successful in reducing sizable property acquisitions. He expressed his intention to double the rate, even though an increased rate proposal by Sinn Féin was previously declined by the Government.
Richmond asserted that property acquisition by investment funds has surpassed acceptable limits, citing 600 homes procured in bulk this year, and he plans to discuss the matter with Jack Chambers, the Finance Minister. However, the Housing Minister, Darragh O’Brien, has not been approached concerning the issue. Richmond declared that should his proposal not warrant inclusion in the budget, Fine Gael would incorporate it into its campaign platform.
The 10% tax rate on mass property procurement was implemented in May 2021 after controversy regarding sizable home purchases in a Kildare housing estate. The tax, however, is only applicable in instances where a single entity obtains ten or more houses within a year, excluding apartment acquisitions.
There is some resistance within the Fianna Fáil party concerning Richmond’s proposition, primarily due to concerns about impacts on company financial statuses and investment inflow into Ireland. Despite this, the party has not officially opposed his move. With examples such as Ryanair’s acquisition of homes to house their crew, the issue continues to attract controversy, deviating somewhat from the original problem the Government aimed to tackle.