Conditions attached to nearly 16,000 homes to restrict investment funds purchases

Ever since regulations were brought in last year to inhibit investment funds from bulk-purchasing residential units, nearly 16,000 homes have received planning permission with the condition attached.

In a report delivered to Cabinet last week, it was shown that that a total of 15,883 residential units have received planning permission in the country on the condition that the developer does not sell large quantities of homes to institutional investors.

The regulation was introduced last year after it emerged a large number of houses in a new estate in Maynooth were purchased by funds for the purpose of listing them on the rental market.

The new measures mitigate against the bulk purchases of houses and duplexes by earmarking homes in developments for owner-occupiers.

The condition can be applied by An Bord Pleanala or the local council when granting permission for a housing scheme.

However, the new regulations do not as of yet extend to apartment complexes.

Earlier this year An Bord Pleanala had to rescind the condition applied to the new O’Devaney Gardens project after the developer successfully filed for a judicial review of the decision.

The new figures come after Minister for Housing Darragh O’Brien TD said that he does not expect a delay in building social and affordable housing due to the rise in construction costs.

Speaking last week, he said the rise in inflation and material costs has been slowing down, while supply chains “have improved”.

“We are targeting this year 24,600 new builds which will be substantially more on last year when just 20,000 (were completed),” he said.

The Fingal TD also said, however, that the number of people who will fall into homelessness has not yet been peaked.

Over 10,000 people are currently homeless in the country and the Minister says that this number may rise further.

Minister O’Brien flagged before last Christmas that there would be a “short-term rise in homelessness”.

Official Department of Housing figures for April show that there were 10,049 people in emergency accommodation, including 1,308 families and 2,944 children.

“I think all of us are aware that behind those numbers are people, are families and we’re doing everything we can to address that situation by increasing supply,” he said.

“My response to homelessness is not just on the emergency measures that we need to take, where we’re providing nearly €200 million, but it is a housing-led response to do that.”