Household lending continued to rise in June
Household deposits are also on the rise, along with home loans as inflation in the property market continues to grow.
Net lending to households was €601 million in June 2025, up from €263 million in the previous month, mainly fuelled by mortgages.
The latest money and banking statistics release showed loans for house purchases increased 4.4 per cent, or €3.7 billion, over the same period, continuing positive growth trends that have been in effect since May 2023. The growth rate has been picking up pace in recent months, with May recording a 4.2 per cent rise.
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On a monthly basis, home loans were up €638 million in June. The rise was the second largest since December 2008, when loans to buy home rose by €643 million, falling short of the €658 million increase recorded in December 2024.
Recent data from Banking Payments Federation Ireland showed mortgage drawdowns hit their highest level since 2008 in the six months to the end of June, topping €6.2 billion in the first six months of the year.
Loans for consumption meanwhile were €70 million higher last month, and loans for other purposes were in negative territory. On an annual basis, loans for consumption contributed €933 million.
Household deposits, meanwhile rose by €498 million in June, totalling €165.8 billion at the end of the month, with both term and overnight deposits rising. Annually, household deposits were up 6.1 per cent year on year, or €9.5 billion. That increase was driven by a €6.3 billion increase of deposits with a maturity up to two years.
Net lending to non-financial corporations was €274 million in June, driven by short-term loans. On an annual basis, the lending rose 3 per cent, or €875 million, to €29.2 billion.
Loans to insurance companies and pension funds were also positive during the month, rising by €5 million increase.
Total bank lending to the Irish private sector was €417 million higher in June.
On an annual basis, it was up 5.2 per cent – or €7.7 billion – in the year to the end of June, with lending to non-financial corporates up by €875 million. Loans to insurance companies and pension funds were slightly lower, declining by €3 million.
The Central Bank also released Ireland's latest gross national debt figures, which put it at just short of €228 billion at the end of June. That was a rise from the €224.1 billion recorded at the end of March.
The figures include €135 billion in Government bonds, and more than €22 billion in Exchequer notes. The level of savings certificates and national solidarity bonds has remained relatively stable, at €5.7 billion and €6.1 billion respectively.
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Irish Times
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Economist calls for budget ‘prudence', as Central Bank governor suggests rethink is needed
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Inheritance, relatives and blended families: what does it mean for tax-free thresholds?
Could you clarify a passing comment that you made in your article last week. You used the phrase 'by blood'. Are you drawing a distinction with uncle or aunt by marriage versus an uncle or aunt 'by blood'? In other words, are you saying that a child can inherit under Class B from their parent's sibling, but not the spouse of that sibling? Are you sure that is correct as I do not see any such distinction in Revenue guidance ? It also raises the question of who is 'the parent' in the case of a divorce and remarriage. Does the birth parent for Class A purposes cease to be a parent on remarriage or can the step-parent become one? Mr DL READ MORE I always wonder when I write 'by blood' whether it is clearly understood. As with many recurring items, I have set out clearly what that means at one point or another but often revert to the shorthand. And yes, it can be counterintuitive if, like me, you grew up in a family where aunts were regarded as aunts regardless of whether they were my parents' siblings or had married into the family – and similarly for uncles. But Revenue does make a distinction when it comes to inheritance. The three inheritance tax thresholds are very specifically delineated according to blood relationship between the person making the gift or leaving the inheritance in their will and the person receiving it. Category A, which offers the highest tax-free threshold – currently €400,000 – is generally referred to as covering gifts and inheritances from a parent to a child, but it is slightly wider than that. [ Inheritance tax: How to avoid leaving your loved ones with a hefty bill Opens in new window ] For instance, if it is the child that dies – as an adult or otherwise – and the parent who inherits from them, the parent will also benefit from the Category A threshold as long as they are inheriting outright – rather than, say, getting a life interest in a property. The threshold will also apply to a child – anyone under the age of 18 – where they are inheriting from their grandparent when their parent is dead. We'll come back to that Category A in a minute in relation to the second part of your query. Category B covers close blood relatives other than parents – or other scenarios covered by Category A. It is sometimes described as lineal relations – i.e. those in a direct line of descent or ancestry. Most commonly, that is seen as covering gifts and inheritance from a brother or sister, a grandparent and an uncle or aunt. And yes, it is only aunts or uncles related by blood – i.e. siblings of one or other parent. You're certainly right to query it. I used to think it covered everyone with that title but I did check with the Revenue commissioners and they did confirm that there had to be a blood relationship with the aunt or uncle for them to be covered under Category B. Category B will also cover life interest inheritance from a child to a parent or any inheritance from a child to an aunt, uncle or grandparent in the unfortunate circumstance of the child predeceasing the older relative. [ Will inheritance tax be cut again in the budget? Opens in new window ] Many people worry about what other people will pay in tax on an unexpected windfall (inheritance) after they are gone. Photograph: Getty Images There is a growing clamour – particularly from people who do not have children – for reform of this Category B. 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Whether one approach should be favoured over another or whether any policy change should be pursued remains a political matter for decision by the Government . Finally, we have Category C which covers all other people benefiting from a gift or inheritance – sometimes called 'strangers in blood' where the current tax-free threshold is €20,000. [ I am due to inherit €30,000, is it worth my while to gift my husband half to avoid tax? Opens in new window ] The three inheritance tax thresholds are delineated according to blood relationship between the person leaving the inheritance in their will and the person receiving it. Photograph: Getty Images And you can see here why Revenue specifies that aunts and uncles in Category B must be blood relations, not relations by marriage. Apart from friends, neighbours, carers, gardeners etc, Category C also includes cousins who are, by definition, blood relatives of some sort and also in-laws, whom in many cases can be closer to the disponer (the person making the gift or inheritance) than even a niece or nephew by blood. But so it is. As regular readers will know, the other key thing to note is that these are lifetime limits on all gifts and inheritances dating back under each category to December 5th, 1991. So, under Category B, you need to tot up all large gifts and inheritances you have received from any grandparent, sibling, aunt or uncle to see if your latest windfall is tax-free or otherwise. And when we say gifts, we mean gifts valued at more than €3,000, as anything below that in any year is covered by the small gift exemption and is also tax free. 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