Figures from the main banks show that mortgage activity fell in May compared with the same month last year.

Banking Payments Federation Ireland (BPFI) said that banks approved 4,559 mortgages during the month, with first-time buyers (FTBs) accounting for just over 60% of the total.

While the number of mortgages approved was up by 2.5% from April, it was down by 7.5% compared with the same period last year.

‘Historically high’ levels

Mortgages approved in May were worth €1.365 billion, with just over 60% of this amount again linked to FTBs.

The value of mortgage approvals rose by 3.3% month-on-month and fell by 2.2% year-on-year.

Despite the annual falls, Brian Hayes (chief executive, BPFI) said that activity levels remained at “historically high” levels, with more than 49,100 mortgages valued at more than €14.1 billion in the 12 months ending May 2024.

“Although FTB volumes and values fell by 10.3% and 7%, respectively, in year-on-year terms, this may partially reflect the fact that May 2023 was the strongest month on record,” he added.

Second-hand homes

Hayes said that activity in the mover-purchaser sector of the market continued to slow, with purchase volumes at just 10,770 approvals in the 12 months ending May 2024.

This was the lowest annualised level of mover-purchase volumes since November 2020.

“This has ongoing implications for the supply of second-hand homes to the market, which has been shrinking in recent months, according to industry sources,” Hayes stated.

According to the BPFI, the period from May to July usually accounts for up to 30% of approvals during a year.