Richmond Suggests Double Stamp Duty For Bulk Property Buyers

Fine Gael TD Neale Richmond has put forward a bold proposal to address the challenges faced by first-time homebuyers and curb the influence of institutional investors in the housing market. Richmond advocates for doubling the current stamp duty on bulk purchases of new homes from 10% to 20%.

This proposal, aimed at improving housing affordability and availability for Irish citizens, is a significant step in Fine Gael’s broader strategy to address the housing crisis.

The existing 10% stamp duty was introduced by the Government in 2021 to deter institutional investors from acquiring large numbers of properties in new developments.

Under this measure, institutional investors who purchase more than ten homes within a single development over a 12-month period are subject to the higher tax rate. This policy was designed to limit the ability of large-scale investors to dominate the housing market, thereby making more homes available for individual buyers.

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Richmond’s proposal comes amid rising concerns about the impact of large-scale property acquisitions by institutional investors. Data and representations received by Richmond’s office suggest that the current tax is not adequately addressing the problem.

As a result, there is growing support for increasing the stamp duty to ensure that more properties remain accessible to individual buyers rather than being absorbed by investors.

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Richmond has already discussed the proposal with Taoiseach Simon Harris and plans to present it to Minister for Finance Jack Chambers in the coming days. This move is part of a broader effort to gain support for the proposal and ensure its consideration in the upcoming budget. The timing of the proposal is critical, as budgetary negotiations are underway and decisions made in this period will have a lasting impact on housing policy.

Earlier this year, the Government rejected a proposal from Sinn Féin to raise the stamp duty to 17%. Taoiseach Harris had previously called for a review of the effectiveness of the existing tax, recognising the need to assess its impact on the housing market.

Richmond’s proposal to increase the stamp duty to 20% represents a more aggressive approach to addressing the issue and reflects the growing urgency of the housing crisis.

Richmond’s proposal has been covered extensively by the media, including an initial report in the Sunday Times, which has sparked significant public and political interest. The aim is to shift the focus of housing policy towards ensuring that homes are available for those who wish to own them, rather than allowing them to be acquired by institutional investors.

A spokesperson for Minister for Housing Darragh O’Brien stated that the 10% stamp duty on bulk purchases is under ongoing review, and any new proposals, including Richmond’s, will be evaluated by the Department of Finance. This review will consider the effectiveness of the current tax and the potential impact of any proposed increases.

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Similarly, a representative for Minister Jack Chambers indicated that discussions about budgetary matters, including potential changes to stamp duty, will take place with party leaders in the coming days.

The Department of Finance has conducted a review of stamp duty for bulk purchases, which will be considered as part of the broader budgetary process. The spokesperson added that it would be premature to comment further until the budgetary negotiations are concluded, with Budget 2025 set to be announced on October 1.

The proposal by Richmond highlights the ongoing debate about how best to balance the needs of first-time buyers with the interests of institutional investors. It underscores the need for effective policies to ensure that housing remains accessible and affordable for Irish citizens, and it reflects a broader commitment to addressing the challenges facing the housing market.