Taoiseach 'wrong' to encourage institutional investors to build houses 

Taoiseach Micheál Martin said that pension funds have a role to play in housing provision. Picture: Gareth Chaney

The opposition has sharply criticised the Government over an apparent shift in housing policy, as Taoiseach Micheál Martin signalled moves to attract institutional investors to build houses.

In an interview with the Irish Examiner, Mr Martin indicated a major shift in policy direction on housing, with a call for more private investment and changes to the rental sector.

In particular, Mr Martin said a “mistake” had been made in vilifying vulture funds in recent years, adding that pension funds have a role to play in housing provision.

“I’m prepared to look fundamentally at everything again, because we need higher volumes,” said Mr Martin, adding that “nothing should be off the table”.

“There’s been a tendency in the debate in Ireland to attack funds, for example, pension funds.

Pension funds have a role in terms of financing construction in this country. 

"I think a mistake was made in the last four years where they became the subject matter of total negativity.”

He said this “has to change” and the new Government needs to create a stable environment for funds to involve themselves in construction.

Sinn Féin’s housing spokesman Eoin Ó Broin lashed out at Mr Martin’s comments, saying that the Taoiseach “doesn’t understand what is at the root of this housing crisis”.

“The overwhelming majority of new homes are funded and delivered by the private sector,” said Mr Ó Broin. “Both the previous government and its predecessor bent over backwards offering institutional investors a range of incentives to get them building.”

He said there were “dizzying amounts” of incentives for investors to build, including the Croí Conaithe cities scheme.

“The idea that the primary issue is attracting institutional investment into the private rental sector, where they’d be delivering high-end expensive private rentals, as the solution to our housing crisis just shows how far from reality Micheál Martin is.”

'Quite shocking'

Social Democrats housing spokesman Rory Hearne said that Mr Martin’s comments were “quite shocking”.

“They’re talking about intensifying, continuing the same policies that got us into the [housing] crisis,” said Mr Hearne.

He said that a shift to institutional investors building large, expensive apartment blocks has helped to compound the housing crisis.

“Pension funds, investor funds don’t want to build affordable housing. They don’t want to build housing that people on average incomes can afford to buy.

“They don’t want to build houses, they just want to build really high, really expensive blocks of apartments and that’s not a sustainable model.”

Mr Hearne said that Mr Martin was “completely wrong” on this and if the Government took that tack, the housing crisis would “deepen and deepen”.