Ministers have signed off on new plans aimed at "dissuading" investment funds from bulk buying houses.
It will include higher stamp duty for bulk purchasers, as well as new planning guidelines.
Cabinet agreed on the measures at a meeting this evening, with the necessary legislative changes set to go before the Dáil tomorrow.
Proposed new planning guidelines would prohibit bulk buying of houses and duplexes, while an 'owner occupier guaranteed' aims to guarantee up to 50% of homes in developments will be ringfenced for owner occupiers.
Minister Darragh O'Brien saying a circular will go to local authorities tomorrow letting them ringfence up to 50% of any new-build housing estate for owner occupiers
— Seán Defoe (@SeanDefoe) May 18, 2021
However, apartments will not fall under these new rules - with the Government saying international investment is needed to ensure supply in 'urban and high density areas'.
Meanwhile, investors will face a stamp duty charge of 10% if purchasing 10 or more residential houses - up from just 1%.
Apartments will also be exempt from the higher stamp duty.
It comes amid growing pressure on the Government to act, after recent revelations about so-called 'cuckoo funds' buying up new homes to put on the rental market.
Announcing the new plans, Housing Minister Darragh O'Brien said: “I fully acknowledge the sheer frustration which people have expressed recently.
"The measures which we have agreed will have immediate and longer term impacts and will help to level the playing field for first-time buyers and owner occupiers.
"We have been very clear that institutional investment has a role to play in supporting new supply, particularly in delivering high density apartments that would otherwise not be built.
"However they should not be allowed to snap up already completed developments where there is a clear demand and no viability issues."
Finance Minister Paschal Donohoe, meanwhile, said the extra stamp duty is aimed at "dissuading" investors from buying up homes that are completed or near completion.
