First-time buyer loans hit 18-year record but fewer homeowners moving, report says

First-time buyers in Ireland have set an 18-year record for mortgage drawdowns, borrowing more last year than at any point since 2003. The value of these mortgages also hit its highest level since the peak of the Celtic Tiger era. This surge indicates a strong demand from individuals entering the property market for the first time.

In contrast, the market for existing homeowners looking to move has cooled considerably. The number of homeowners taking out new mortgages fell for the third year running, reaching its lowest figure since 2014. This suggests a slowdown in property market turnover among those who already own homes.

“

Today’s report shows that first-time buyer activity remains strong, particularly for new homes, but the wider market remains subdued.

Rising property prices are driving up the amounts being borrowed across the board. The average first-time buyer mortgage now stands at €319,710, requiring an average income of nearly €80,000, while existing homeowners are borrowing an average of €379,707. These figures represent the highest borrowing amounts recorded by the Banking and Payments Federation Ireland (BPFI) since it began collecting data.

Despite the overall increase in first-time buyer activity, the report notes regional variations. While most areas have seen significant growth, particularly in new homes, the west of Ireland has experienced a decline in both first-time buyer and existing homeowner mortgage activity. The median price for a first-time buyer's home has jumped by approximately €100,000 over the past five years, underscoring the ongoing affordability challenges in the market.

“

Rising property values, mortgage values and household incomes underline the extent to which affordability continues to shape mortgage activity across the country.