Vulture fund landlords will drive up Galway rents and house prices

The country’s biggest private landlord has its sights set on Galway where it’s planning to roll out its highly profitable ‘buy-to-let’ model – a move that will drive up rents and house prices according to a local TD.

Ires Reit, which has been dubbed a ‘vulture fund’ by those opposed to its model, already owns almost 4,000 units in Dublin, but according to its Chief Executive, Margaret Sweeney, they see further opportunities in the regional cities including Galway.

Galway West TD Mairéad Farrell told the Connacht Tribune that the arrival of a vulture fund to town would only serve as a further barrier to home-ownership.

“This will lock ordinary working people out of home-ownership and people who want to buy a home are already struggling as it is.

“It’s pushing it out of reach for everyone and all age groups are affected by this housing crisis – people of all ages are coming into my clinics struggling, whether it’s trying to buy a home, rent or get social housing,” said the Sinn Féin Deputy.

Investment funds such as Ires Reit – a publicly listed company – buy up large swathes of housing, generating profits for shareholders through the rental of, in the majority of cases, apartments.

This model did not serve those struggling to put a roof over their heads well, said Deputy Farrell who lashed the government for failing to tackle vulture funds.

“This goes back to the Government and the Minister for Housing failing to address the issue. They introduced a 10% stamp duty surcharge on bulk-buying homes – but they exempted apartments.

“Some people want to live in apartments and apartments are homes, but the Government doesn’t seem to recognise that. Generations of people will be forced to move out of the city and you have a situation now where parents and grandparents are looking at these apartment blocks being built, knowing that their children and grandchildren won’t have a chance to live there,” she said.

Read the full story in this week’s Connacht Tribune, on sale in shops now – or you can download the digital edition from www.connachttribune.ie