Cabinet approves 10% stamp duty for bulk purchases of ten houses or more
The 10% stamp duty won't apply to apartments.
The Cabinet has agreed that bulk purchases of ten or more houses will be subject to 10% stamp duty in a measure that will be voted on in the Dáil tomorrow.
Speaking at a press conference on Tuesday, Minister for Finance Paschal Donohoe said that the move is intended to "provide a very significant disincentive" for investment funds.
He said the measures will apply to all houses in the State, however, apartments will be excluded.
"This is a measure that focuses on the purchase of houses, and we are doing this because of a recognition that apartment developers in particular do face significant viability challenges at time", he said.
"There is a role for some sort of purchase there to allow the apartments to be built."
Guidelines will soon be issued to local authorities and there will be exemptions for local authorities and approved housing bodies. These guidelines will take effect from Wednesday 19 May.
Donohoe said that once passed by the Dáil the new measures would come into effect from Thursday 20 May.
The Affordable Housing Bill will also be amended to allow local authorities to grant planning permission, provided that a percentage of homes are reserved for owner occupiers.
The measures come as the Government came under fire last month after an estate of 112 houses in Kildare was bought by an institutional investor.