by Philip Corcoran May-19-2021 in Property
The Government has announced that it is to consider a new increased Stamp Duty rate of 10% for bulk purchasers of homes. The announcement follows recent concerns raised following an institutional investor’s bulk purchase of hundreds of homes in two housing estates – homes that had been destined to end up largely in the hands of first-time buyers. With housing supply low and the market difficult for first-time buyers, pressure was on the government to act swiftly to announce measures to prevent similar bulk purchases in the future.
The Government’s stated aim for introducing the measures is to provide a disincentive to the practice of the purchase by institutional investors of large parts of housing estates before they reach the market.
The Government announcement included the following proposed measures:
- A new stamp duty charge of 10% will apply to the multiple purchase of 10 or more residential houses in a 12 month period. It is intended that this will apply to all houses, regardless of location.
- Apartments are fully exempt from the measures.
- Purchases by Local Authorities, Approved Housing Bodies and the Housing Agency are exempt.
Stakeholders in the Property market will welcome the exemption afforded towards apartments meaning that the currently strong Private Residential Sector will be unaffected when it comes to apartments.
Stakeholders will also welcome the fact that a three-month transition period is proposed for transactions which are contracted but have not yet completed. While the detail of this is not yet clear, this should mean that parties have three months to complete transactions currently in progress without having to pay the higher 10% rate of stamp duty.
Individuals in the housing market and particularly first-time buyers will welcome the measures which if they achieve their aim, will improve the position of such buyers in the market.
The measures will be brought to the Dáil by way of a Financial Resolution this evening, Wednesday 19 May 2021.
For further information, please contact Philip Corcoran pcorcoran@hayes-solicitors.ie.
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About the Author
Philip Corcoran
Philip is an associate solicitor in the Property team at Hayes solicitors. He has a range of experience acting for clients in varied transactions including the purchase, sale, mortgaging and refinancing of both residential and commercial premises.