Figures from the main banks show that the volume and value of mortgages drawn down by first-time buyers hit their highest levels since 2007 last year, despite a slight drop in volume in the wider market.
Banking Payments Federation Ireland (BPFI) said that 43,030 mortgages were drawn down in 2024, valued at almost €12.6 billion. The volume of drawdowns fell by 1.6% compared with the previous year, but values rose by 4%.
Figures from BPFI show there were more than 26,000 mortgages worth €7.8bn drawn down by first-time buyers last year, a post-crash high. A further 51,337 mortgages valued at more than €15.3bn were approved in 2024, of which 31,496 worth €9.6bn were for first-time buyers, increases of 3.4% and 9.4% from 2023, respectively.
The overall value of mortgage approvals (+2.9%) and drawdowns (+4%) increased year-on-year despite a marginal decline (-1.3%) in drawdowns to the lowest annual volume since 2020.
Brian Hayes, chief executive of BPFI commented, “Our latest mortgage data, shows another strong year for first-time buyers who have dominated the mortgage market in recent years.
“While activity in the overall market was more subdued, solid growth in approvals activity points to a positive outlook for 2025 and beyond.”
The CEO added that it was “particularly encouraging” to see strong growth in first-time buyer mortgages on new property purchases or self-builds which reached their highest annual volume and value since 2008 and 2007, respectively.
“Demand for housing and mortgages remains very strong, as evidenced by the continued rise in average mortgage drawdown values. Average mortgage values reached their highest levels on record in all four home mortgage segments in 2024.”
Looking ahead for 2025, Mr Hayes said he expects strong housing and mortgage demand to continue, adding, “The potential mortgage output for 2025 looks encouraging, evident from the solid growth in mortgage approvals activity.”
In responses to the figures, Irish Mortgage Advisors chair Trevor Grant said record drawdowns for first-time buyer had been driven by strong demand for home ownership, a resilient economy and uncertainty in the rental market.
“While this is encouraging, we need to see significantly more new homes delivered to curb house price inflation and meet growing demand,” he added.
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