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Mortgage activity ‘more subdued’ in 2024
Figures from the main banks show that the volume and value of mortgages drawn down by first-time buyers (FTBs) 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%.
‘Strong year’ for FTBs
The BPFI figures also show that 51,337 mortgages worth €15.3 billion were approved in 2024. Approval volumes rose by 2.9% year on year, while values rose by 8.2%.
For approval and drawdowns, FTBs continue to account for just over 60% of the market.
BPFI chief executive Brian Hayes described 2024 as “another strong year for FTBs”, with “more subdued” activity in the overall market.
The number of FTB drawdowns in 2024 was 26,242, valued at over €7.8 billion – the highest annual figures since 2007. FTB drawdown volumes grew by 2.5% compared with 2023, while values rose by 8.4%.
Mortgage values hit highs
“It’s particularly encouraging to see strong growth in FTB mortgages on new property purchases or self-builds, which reached their highest annual volume and value since 2008 and 2007, respectively,” Hayes stated.
Average mortgage values reached their highest levels on record in all four home mortgage segments (FTB and mover-purchase mortgages on new and second-hand properties) in 2024.
The average FTB mortgage on new properties increased by 1.6% to €321,912, while the average FTB mortgage on second-hand properties rose by 7.4% to €283,969.
Hayes attributed the drop in the volume of mortgage drawdowns partially to further declines in mover-purchase and switching activity.
“Mover purchase volumes fell by 6.3% year-on-year to 9,030, the second-lowest level (after 2020 when COVID restrictions limited activity) since 2015,” he said.
Housing delivery
Hayes described the outlook for mortgages in 2025 as “encouraging”, adding that it would be crucial for both new and second-hand housing supply to increase to meet this demand.
“Housing commencement activity exceeded 60,000 units in 2024, but it remains to be seen how quickly new housing will be delivered in the months ahead, and how much will be made available for private purchase,” he concluded.
BPFI figures for the final quarter of 2024 show that 13,009 new mortgages to the value of €3,949 million were drawn down by borrowers – an increase of 12.3% in volume and 20.1% in value on the same quarter of 2023.
Figures also show that 3,592 mortgages worth just over €1.1 billion were approved in December 2024.
The number of mortgages approved in December was down 18.4% month-on-month and up by 28.6% year-on-year.
The value of December approvals fell by 19.2% month-on-month and rose by 37.9% year-on-year.
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