A full ban on investment funds buying up residential property is being considered, according to the Housing Minister.
However, Tánaiste Leo Varadkar has said an outright ban would be wrong and such funds have a place in Ireland.
Kildare Situation Causes Backlash
Invited into Ireland by tax breaks from Michael Noonan in the last decade, investment funds buying up housing here is nothing new.
However, the purchase of a full estate of houses in Kildare has triggered a backlash.
Housing Minister Darragh O'Brien says that's not the place of funds.
Additionally, he says while they may have some role in developing apartments, the government is going to take action:
"Buying up family homes from under the noses of first time buyers is unacceptable."
"So whatever measures are needed, up to and including a ban, I'm in open to looking at."
However, Fine Gael Finance Minister Paschal Donohoe has said such funds drive development.
While Tánaiste Leo Varadkar also doesn't support a full ban.
FF &FG have turned housing into an investment opportunity for international funds.
The sweetheart leasing deals with developers and global funds must be ended #homesnotinvestments pic.twitter.com/lilxese5M2
— Cian O'Callaghan T.D. (@OCallaghanCian) May 6, 2021
Potential To Drive FF and FG Apart
This has the potential to drive the first major wedge between Fine Gael and Fianna Fáil since they entered government.
Ministers O'Brien and Donohoe are working to come to a solution that will likely involve reserving a portion of new developments for first time buyers.
Those plans are set to come forward next week.
However the Housing Minister has stressed the tax breaks for such investment funds also need to change.