Digital Desk Staff
Purchases of more than ten houses at once will attract a stamp duty of 10 per cent, under plans being considered by Government tonight.
However, this will not apply to blocks of apartments, while local authorities and approved housing bodies will be exempt as well.
As The Irish Times reports, all owner-occupiers will be eligible to buy sections of new housing developments reserved for individual purchase, under the plans .
Originally, it had been planned that the rules would apply to first time buyers only. However, it is understood that the Cabinet is now considering a proposal from Minister for Housing Darragh O’Brien which would apply to owner-occupiers generally.
This is part of a package of measures intended to deal with the housing crisis and prevent first time buyers and others from being squeezed out by property investment funds. Currently stamp duty on residential property is 1 per cent on the first €1 million.
It will see up to 50 per cent of a housing development put aside for purchase by this category of buyer, alongside the “Part V” commitments on social and affordable housing. That commitment could also rise, to up to thirty per cent of units in certain developments.
Targeted rules
It is understood that there will be targeted rules to prevent people circumventing the rules by splitting multiple purchases into individual units.
This will work by applying the charge when a buyer purchases the tenth unit within a year - again, this will not apply to apartment developments. There will also be a transition period of three months to allow deals to be completed.
Houses that are put aside for purchase by owner occupiers will be available to buy for a certain period of time after completion, sources said, after which they can be purchased more widely.
However, there is also concern in Government that the funds should not be dissuaded from other property investment, especially apartments, where it is hoped they will continue to finance large developments in urban areas.
The Dáil is expected to vote on Wednesday night on emergency measures to deal with so-called cuckoo funds buying up housing estates.
Taoiseach Micheál Martin said there would be further discussions later on Tuesday “in terms of some of the proposals that are being proposed”.
“And we will need the support of the parties of this House to facilitate the passage of these decisions the Government will take,” he said.
