QUESTIONS HAVE BEEN raised over the future of almost 30 new homes in the Housing Minister’s constituency, as fears grow they may be sold to an investment fund.
The 28 houses have been completed in Boroimhe estate in Swords in north Dublin by MKN Property – but appeals for information about when the homes will go up for sale have been met with silence.
Local councillors and residents in the area said attempts to find out the future of the new builds have been unsuccessful and that concerns arose after it emerged that the project was not assigned to any local real estate agent.
This would be usual if they were being put on the open market for homebuyers, and is often done when plans for each property are still only drawings.
The company did not respond to queries by The Journal this week, which came on the back of contact made by a number of politicians and residents.
Housing Minister and local Fianna Fáil TD Darragh O’Brien defended government policy on foot of criticisms by area councillors.
O’Brien told The Journal that the government has sought to “disincentivise” the practice of bulk purchases since 2021 – when it was revealed that a bulk sale took place in Maynooth, Co Kildare – by increasing stamp duty on such sales from 1% to 10%.
“We took firm action to protect traditional family homes from bulk purchases while maintaining investment where it is needed. This was done through an immediate stamp duty hike which was introduced by the Department of Finance,” he said, adding that there the bulk-buy tax is kept under “constant review” by his department.
The questions in Swords come amid concern at the number of houses bulk-bought by investment funds, which Dáil figures this week showed had significantly increased over the past year.
Finance Minister Michael McGrath released the data to Sinn Féin’s Pearse Doherty, showing that 623 properties were bought by 16 investors in 2023. This was an increase on the number of properties bought when compared to 2022, when 395 were bought by 15 investors.
It means the practice grew despite the additional 10% tax to discourage the practice by investment funds.
Bulk buys are often put on the rental market at premium prices.
Last week, it emerged that 85% of the homes in another estate in north Dublin had been purchased by an investment fund.
Forty-six of the 54 units in Belcamp Manor in Balgriffin, Dublin 17 were sold last month for over €21.5 million.
Labour councillor James Humphreys said it was his understanding that the homes in Boroimhe would not be purchased by the council, nor put on private sale.
“Indications that a REIT [real estate investment trust] is going to purchase a block of 28 houses is very concerning. Swords is in desperate need of housing for young families with waiting lists in thousands for new builds.”
He added: “It further shows that 10% stamp duty was not sufficient to deter this from happening, what we in the Labour Party have been saying since the beginning.”
Independent councillor Dean Mulligan said the estate is a prime location near the proposed Dublin Metro and that locals have been desperately looking for somewhere in the area to live.
“I’ve been contacted by over 25 individuals who are looking to purchase homes in the local community but who are living at home with their parents, with their own children.
“They want a start and to see these beautiful homes going up with no clarity is a slap in the face. We as local reps are none the wiser. It means getting a house is still but a pipe dream for so many of these young people.”
Mulligan and Sinn Féin councillor Ann Graves said that as the housing scheme is in Minister Darragh O’Brien’s constituency, he needs to provide the community with answers.
Graves said that she wrote to the developer a number of times to no avail.
“You’d always get a holding response, that an estate management company is looking after it and they’ll deal with queries from people interested in buying, but that hasn’t happened here. We cannot find out any information and that’s always problematic,” Graves said.
“It’s a lovely spot for people returning to Swords or who want to stay in the area.”
Independent councillor Joe Newman said that the homes should be put on the open market: “I’m certainly against these big investment fund coming in and reducing opportunity for people to own their own home.”
Mulligan said that while it is a relatively small development, being an addition to an existing estate, he believed the “minister should have foresight on what’s happening in the local area given it’s an important development for Swords and the wider community”.
Minister O’Brien that the government had introduced new planning guidelines which require local authorities and An Bord Pleanála to ban the bulk purchasing of houses and duplexes in any future planning applications.
“These planning guidelines do not apply retrospectively, as this would be open to legal challenge,” he said.
The minister said that the number of homes being prevented from bulk-purchasing “far outstrips the small number of instances where this has happened”, but added that the stamp duty measure remains under review.
“Institutional investment has a role to play in supporting new supply, particularly in high density apartments that would otherwise not be built. However, as said we will be keeping the measures under constant review,” O’Brien concluded.
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