02 Jul 2022

Measures to combat cuckoo funds sees properties ring-fenced for individuals in Kilkenny

253 units reserved for individual buyers in the last year - new data

253 properties ring-fenced for individual buyers in Kilkenny to combat property investors

In the last year, 253 residential units in Kilkenny have been ring-fenced for individual buyers and restricted from bulk buying or multiple sales to a single purchaser.

Minister for Housing, Local Government and Heritage, Darragh O’Brien TD, confirmed the figures today as he published a progress update on the planning measures introduced one year ago to increase home ownership.

In May 2021, Ministerial Guidelines for Planning Authorities (“Regulation of Commercial Institutional Investment in Housing”) were issued to planning authorities, including Kilkenny County Council, in order to prevent multiple housing and duplex units being sold to a single buyer. 

The Ministerial Planning Guidelines are part of a series of Government measures designed to prohibit the bulk buying of houses and duplexes in order to increase housing stock for home ownership.

Other measures include a 10% stamp duty levy on the cumulative purchase of 10 or more residential houses in a 12 month period.  

The Guidelines included requirements that a new form of condition be inserted in applicable new planning permissions, to the effect that all houses would have to be made available for sale and for first occupation by separate, individual households for a period of two years after completion of the home.

In the case of mixed developments, the provision only applies to the houses and duplex units and not apartments.

If, after a period of two years, the local authority is satisfied that despite reasonable efforts, a market has not emerged, the condition will lapse.

As of May 18, 2022, An Bord Pleanála advised that it had applied the planning condition prohibiting multiple sales to a total of 7,988 residential units across 23 Strategic Housing Development (SHD) planning permissions.

Furthermore, of the 31 local authorities, 23 confirmed that they have permitted 7,895 residential units with a condition attached to prohibit multiple sales.

Among these, Kilkenny County Council permitted 253 residential units with a condition attached to prohibit multiple sales.

Nationally, in a one-year period, a combined total of 15,883 homes have received planning permission with conditions restricting the bulk buying or multiple sales to a single purchaser.

Commenting on the data, Minister O’Brien TD re-affirmed the Government's commitment to supporting homeownership.

"This data demonstrates that we are making the right interventions and delivering for those in Kilkenny who wish get to get on the property ladder," he said. 

Under Housing for All, the Government’s housing plan to 2030, Kilkenny County Council and all other local authorities are required to ensure home ownership as a tenure type is provided for and estimated in their Housing Strategies.

The Department of Housing, Local Government and Heritage will continue to monitor the operation of the Planning Guidelines on the Regulation of Commercial Institutional Investment in Housing.

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