The State has been described as “the biggest vulture fund in the country”. 

Last week, there was significant controversy after it emerged 80% of homes on a newly-built housing estate in Belcamp Manor had been bought by an international investment firm. 

Taoiseach Leo Varadkar said the Government would have to “take a look at this particular case” and assess whether the current regulations need to be reviewed. 

Speaking on The Pat Kenny Show, columnist Paul McNevie said it is not just international investment firms ordinary buyers should be worried about. 

“In 2022, for example, there were 29,000 units built in Ireland,” he said. 

“Take out 4-5,000 self-builds, leaving, say, 25,000 units and 44% - heading for half of those - were bought either by the State through local authorities and approved housing bodies.”

'A great investment'

The final figures for 2023 have not yet been released but it is expected that around 33,000 will be built. 

In Budget 2023, the Government allocated itself €2.3 billion for social and affordable housing and Mr McNevie said the State has been “hoovering up” properties. 

“An estate agent said to me last week… that the State has now become the biggest vulture fund in the country,” he said. 

Mr McNevie described residential property as a “very attractive and very safe” investment and that he did not expect investment funds to stop snapping up property anytime soon. 

“The last thing people will default on, not pay and want to lose is their home,” he said. 

“But the other extraordinary factor - and this is a very good thing in lots of ways - [is that] if an investment fund comes in and buys up a housing estate and then rents them out, up to 70% of the income might be paid through Housing Assistance Payments. 

“It’s State guaranteed - it’s a great investment.”

New build semi detached properties in Northern Ireland.

Since 2021, any organisation buying 10 or more units must pay 10% stamp duty; the new rate was introduced to deter bulk buying of housing estates but Mr McNevie said he did not think it has had much impact. 

“These are commercial players and the stamp duty on a commercial property is 7.5%,” he said. 

“So, it’s a relatively small number of houses, it’s embarrassing for the Government. 

“Sinn Féin are making the maximum of it and fair play. 

“I do think the Government will and should stop investment funds buying houses.” 

The Government expects a further 33,000 news homes will be built in Ireland this year.

Main image: Terraced houses in Kinsale, County Cork, Ireland.