A LIMERICK TD has called on the Government to end the tax advantages gifted to institutional investors in the housing market that are excluding home buyers and renters from affordable accommodation.
Speaking in the Dáil yesterday evening, Sinn Féin Deputy Maurice Quinlivan said the average rent in Limerick City had now reached €1,407 a month while the cost of renting two and three bedroom units has increased by over 13 per cent since the end of 2020.
“Rising rents and consumer price increases make it extremely difficult for those who are working to keep a roof over their head. The extreme cost of rent and of house purchases have not come out of the blue. It is a result of failure after failure of this government and its predecessors. There are nine properties to rent in Limerick City today with only one house available for less than €2,000,” he explained.
“Investment funds enjoy tax advantages and exemptions that are pushing up rents and locking struggling homebuyers out of the housing market. They are distorting the activities of developers, who are skewing supply towards investment funds to maximise their profits rather than serving the needs of society.
“These funds were granted massive tax advantages by Fine Gael, which were supported by Fianna Fáil – paying no corporation tax on their rental profits, no capital gains tax and little in way of stamp duty. Struggling homeowners do not stand a chance against the financial firepower of these funds.
“I am contacted near daily in relation to the housing situation in Limerick. People are despairing. Young people are trying to start their independent lives but are resigned to living with their parents because they cannot afford rent while they save to buy a house.
Calling on the Government to end tax advantages and exemptions to Irish Real Estate Funds and Real Estate Investment Trusts, Deputy Quinlivan said that these advantages lock out home buyers and renters from affordable accommodation.
He also called for the establishment of a capital fund for Local Authorities and approved Housing Bodies to forward purchase developments for the provision of social, affordable rental and affordable purchase homes.
