Cuckoo Funds has been recently used to describe big investors investments poured into developing build to rent housing. However, on average the developments funded by cuckoo funds are not affordable for the average individual or family. Some of the main investors that comprise of the cuckoo funds are large institutional investors like pension funds, real estate investment trusts (REITs) and special private rental firms. Investors are increasingly interested in attempting to tap into the growing demand for Irelands rental market.
Cuckoo funds are known for buying properties and charging insanely high and unaffordable prices for the properties. However, the Housing Minister Murphy has denied that housing is unaffordable. Murphy continued to argue and defend the government’s record on housing and claimed that the government has protected renters.
However, individuals have accused the government of ignoring the red flags of activities related to cuckoo funds. Multi-national venture funds have been able to sweep up properties and resell them for immense costs. Cuckoo funds have created 3,000 new housing units in 2018.
The government has not yet claimed to see the dangers of cuckoo funds. Instead, the government neglects the negative signs of cuckoo funds. The UN has even accused the government of facilitating the investor centered decisions. The UN further criticized the governments housing policies.
The UN rapporteur further accused the Irish government of helping cuckoo funds force out first time buyers and facilitate moving people out of their homes. Thus, allowing venture funds to increase the cost of homes.
Private investment in homes is combining with cuts in affordable housing budgets is creating expensive, unaffordable homes. Furthermore, the financialisation of housing will negatively impact almost all tenants. The government defended itself from claims about the housing market in that progress has been made with the new housing policy referred to as Rebuilding Ireland.
Initiatives highlighted in the report reflecting the progress of the housing market were the help to buy scheme, vacant levy tax and the rent pressure zones. The government continued to refute its efforts by noting that state officials have said housing costs were affordable to most people. The reference used to make the claim was gathered from the Economic and Social Research Institute which concluded that housing was entirely unaffordable in every part of Ireland. The department continued to claim that many households total housing costs are not high in comparison to household disposable income. The individuals who face the burden of not being able to afford housing in Ireland applies only to specific cohorts according to government reports.
