Mortgage approvals hold steady despite February slowdown, as house prices hit record highs in ROI.
In this article we cover:
- What’s happening with mortgage approvals
- How much are house buyers paying
- What’s driving first-time buyer demand
- Why are buyers facing more competition
- Why is securing financing early important
Mortgage approvals remained stable in February despite a drop in overall housing market activity, according to the latest Mortgage Approvals Report figures from Banking & Payments Federation Ireland (BPFI).
However, with house prices continuing to rise and supply constraints tightening, competition among buyers is expected to increase in the coming months.
The BPFI report shows that 3,420 mortgages were approved in February, with first-time buyers (FTBs) accounting for 61.5 per cent of approvals (2,102 mortgages) and mover purchasers making up 18.3 per cent (626 mortgages). While the total number of approvals fell 4.5 per cent year-on-year, the overall value of mortgage approvals rose 6.6 per cent to €1.078 billion, reflecting higher housing costs.
For first-time buyers, the average purchase value reached a record €322,050, while mover purchasers saw their average rise to €375,495 — the highest levels recorded since the data series began in 2011.
Commenting on the latest data Brian Hayes, chief executive BPFI said the record levels, “reflects higher housing prices across the country, which increased by 8.1% in the 12 months to January 2025 according to the Central Statistics Office.”
“Meanwhile, on the supply side, the most recent DAFT Report indicates that the number of second hand homes available for sale had dropped below 10,000 for the first time.”
“It’s clear that housing demand remains strong, especially from FTBs, supported by employment and earnings growth, and as evidenced by the 11,731 FTB applications for Help to Buy in the first two months of this year, up from 7,840 in the same period of 2024.
“However, supply constraints continue which means that competition between prospective buyers, both FTB and movers, could intensify in the months ahead.”
For self-builders and house buyers alike, securing financing early is key, as mortgage approvals remain strong but limited housing supply could make competition tougher.
