Government “going backwards” on housing, says Hearne

News that Taoiseach Micheál Martin is looking to incentivise the free market to have more of a say in the rental sector has been greeted with criticism by Social Democrats TD Rory Hearne.

Hearne, who published a book in 2020 about what he calls “Generation Rent,” has criticised the move and said that the move leaves Irish renters more open to vulture funds.

“Calls by the Taoiseach for more incentives for private investment in the rental sector show this government is prepared to double down on years of failed housing policy,” he said.

The Dublin North-West TD questioned if Fianna Fáil can truly call themselves “the party of home ownership and housing” as the new policy “prioritises the interests of global and Irish investor funds, turning young Irish adults locked out of homeownership into a generation of renters.”

The Social Democrats housing spokesperson said “this has resulted in massive inequality with serious social implications.”

“The Housing for All plan was fundamentally reliant on investor funds to deliver housing, especially in Dublin. And despite Government claims that they were clamping down on vulture funds, they actively promoted institutional investment by not applying new stamp duty rates to the bulk purchase of apartments.

“In addition, they continued to offer generous tax breaks to help maximise the profits of global funds.”

“However, in the past few years, due to rising interest rates and input costs, profitability for institutional investors has reduced, so they have been lobbying hard for greater supports, particularly in the area of removing rent restrictions on existing properties.”

Last week in the Dáil, defending Fianna Fáil’s delivery on housing, Martin said that Ireland needs to adapt a different philosophy in the housing sphere, which in this case translates to adding more private elements into the equation.

“Now the Taoiseach’s big move on housing is to ramp up support for vulture funds and continue with the very policies that caused this housing crisis,” Hearne remarked.

“What we need are affordable homes that people can buy and rent – not more ‘build to rent’ apartment blocks delivered by vulture funds.

“What is clear is that the Government’s housing plans are in disarray. Instead of taking a new approach, they are going backwards.”