Stamp duty on the bulk buying of houses is set to increase from 1% to 10% under plans agreed by the Cabinet this evening.
However, there will be an exception that will allow investment funds to bulk buy apartments without incurring the penalty.
Local authorities will also be instructed from tomorrow not to allow bulk buying of new developments.
They'll be instructed to reserve up to 50% of new planning permissions for owner occupiers.
Minister Darragh O'Brien saying a circular will go to local authorities tomorrow letting them ringfence up to 50% of any new-build housing estate for owner occupiers
— Seán Defoe (@SeanDefoe) May 18, 2021
The Government has been under pressure to act following revelations around investment funds buying up large amounts of homes in some new housing estates.
Announcing the plans, Housing Minister Darragh O'Brien said: “I fully acknowledge the sheer frustration which people have expressed recently.
"The measures which we have agreed will have immediate and longer term impacts and will help to level the playing field for first-time buyers and owner occupiers.
The Cabinet agreed the measure this evening and it will be voted on in the Dáil tomorrow.