Vulture funds ‘to pay twice stamp duty on homes’

Fine Gael has proposed to double the stamp duty on bulk purchases of new homes by vulture funds to 20 percent, responding to increasing pressure to address the housing crisis in Ireland. Neale Richmond, a junior minister in the Department of Finance, announced this intention in an interview with The Sunday Times, highlighting the urgency of the housing situation. This proposal aims to target the purchase of ten or more homes within a year, which is a significant move compared to the opposition party Sinn Fein's suggestion to raise the duty to 17 percent. The decision to increase the stamp duty reflects Fine Gael's strategy to position itself as proactive in tackling housing issues ahead of the upcoming general election. By taking a stronger stance than its coalition partners, the party seeks to differentiate itself and appeal to voters concerned about housing affordability and availability. This move is likely to create tension within the coalition government, particularly with Fianna Fáil, which may not fully support such a steep increase. The housing crisis in Ireland has been a pressing issue, with rising prices and demand for homes outpacing supply. Vulture funds, which are investment firms that buy distressed assets, have been criticized for exacerbating the situation by purchasing large numbers of homes, often leading to increased rents and reduced availability for local buyers. The proposed increase in stamp duty is seen as a potential deterrent to these funds, aiming to slow down their acquisitions. As the general election approaches, housing will remain a central topic in political discourse. Fine Gael's proposal is a clear indication of its commitment to addressing the crisis, but it also raises questions about the coalition's unity and the effectiveness of such measures in providing long-term solutions for the housing market.