Stamp duty on purchases of more than ten houses would rise by 10%; Government to prevent cuckoo funds from bulk-buying
DUBLIN: The government has put forward a plan to prevent cuckoo funds from bulk-buying new homes and other properties. The new plan is to impose a 10% stamp duty on those who buy more than 10 houses. Currently the stamp duty on residential property is one per cent for the first $ 1 million, which is now going to be raised to 10 per cent.
Since large investors buy in bulk, the needy do not get houses and must pay a higher price. This is part of a package aimed at tackling the housing crisis and preventing first-time buyers and others from avoiding property investment funds.
This provision does not apply to those who buy apartment blocks. Local authorities and approved housing bodies will also be excluded from the legislation. All owner-occupiers can also be part of the new housing development.
Initially, only first-time buyers were included in the scheme, but owner-occupiers were later included. The plan is to ‘reserve’ 50-80% of new housing schemes for first-time buyers. This will be included along with the Part V commitments on Social and Affordable Housing.
The new rates will come into effect soon after the vote in the Dáil today. The approval of this bill is expected to have a significant impact on Ireland’s housing market. Taoiseach Micheál Martin has requested the support of all parties to pass this law.
The law also seeks to prevent violations of the law by buying large quantities of houses and dividing them into individual units. The condition is that buyers must pay when they buy their tenth home in a year. The transition period of three months to complete these deals will also apply. This does not apply to apartment development.
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