Mortgage approvals for first-time buyers continue to exceed housing supply
Mortgage approvals for first-time buyers continue to exceed the addition to the housing stock, therefore ongoing price inflation is inevitable, according to a Goodbody analyst responding to the latest mortgage approval data from the Banking & Payments Federation Ireland.
A total of 3,970 mortgages were approved in July 2017, with one in two approvals for first-time buyers.
Mover purchasers accounted for 31.3pc of mortgage approvals in July.
The total number of mortgages approved in July were down 8pc month-on-month, however mortgage approvals are up 17pc year-on-year, according to data from the Banking & Payments Federation Ireland.
In the year to date, there has been 13,247 first-time buyer mortgage approvals, up 43pc year-on-year. The help-to-buy scheme is contributing to this trend, with separate data from the Revenue Commissioners showing that 4,752 help-to-buy applications have been approved since the scheme’s commencement.
The value of mortgages approved in July 2017 equated to €853m, of which 49.7pc was accounted for by first-time buyers.
While the value of mortgage approvals rose by 23.3pc year-on-year, similar to the rate of mortgage approvals, the value of mortgage approvals also declined by 8.1pc month-on-month in July.
The Banking & Payments Federation Ireland represents over 70 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace in Ireland.