Number of first-time buyers hits levels last seen during Celtic Tiger
They were valued at more than €3.7bn, a level last seen in 2006.
Banks said the average home mortgage value hit a record level at almost €331,000 up to last month, nearly €28,000 higher than in the second quarter of last year.
Average mortgage amounts on second-hand properties jumped by more than €29,000 to €324,688 in the four quarters to last month.
The average home mortgage on new properties was almost €24,000 higher at €341,063.
Switching activity jumped by 42pc in volume the first half of the year.
All customer segments had grown year on year, but first-time buyers continue to dominate
First-time buyers remain the single largest segment in terms of the number of mortgages drawn down in the first half of this year.
Banking and Payments Federation chief executive Brian Hayes said that, overall, there had been almost €6.2bn in mortgage drawdowns in the first half of this year, up nearly 19pc on the same period last year.
It is the highest value of first-half drawdowns since 2008.
The total number of mortgages issued by lenders was up 10pc to 20,195.
Mr Hayes said all customer segments had grown year on year, but first-time buyers continue to dominate, with 11,803 mortgages drawn down and valued at over €3.7bn.
A total of 2,660 switcher mortgages were issued in the first half of the year, a rise of 42pc.
The value of switcher mortgages reached €732m, the third-highest level for the first half of a year since 2008.
'This signals a normalisation of switching trends following a sharp peak in activity in 2022 and subsequent slowdown,' Mr Hayes said.
New properties, including self-build, accounted for more than a third of home-purchase mortgage drawdowns in the first half of the year.
The banking federation also published mortgage approval figures for June.
A total of 4,883 mortgages were approved last month; 2,920 were for first-time buyers, representing 60pc of the total.
Mover-buyers accounted for 992 approvals, or 20pc.
Mortgages approved in June were worth €1.56bn, with first-time buyers accounting for €1bn
The number of mortgages approved in June fell by 3.1pc month on month, but it rose by 9pc on the year.
Mortgages approved in June were valued at €1.56bn, with first-time buyers accounting for close to €1bn.
Mr Hayes said that in the first half of the year the number of first-time buyer approvals was up by 5.4pc to 15,736. This is the highest first half of a year level since the data series began in 2011.
Mover-buyer approval volumes fell for the fourth year in a row to 4,990.
Housing demand from first-time buyers remains strong. There were 22,903 Help to Buy applications in the first half of 2025, according to the Revenue Commissioners.
This was nearly 41pc more than in the first half of last year, Mr Hayes said.
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Irish Times
2 days ago
- Irish Times
Is it sensible to buy a house together in Ireland if you're not married?
Ireland is in love with cohabiting. Indeed, couples here have been shacking up together without marrying at a rapidly increasing rate. If you're saving for a house , or someone is struggling with rent, living together can make financial sense too – just don't forget to protect yourself. Upward trend Since the financial crash, couples here have become a whole lot more enamoured, it might seem. The number of those living together without children rose by 6 per cent between 2011 and 2016, CSO figures show. This increase then almost tripled, with a further 17 per cent rise recorded in Census 2022. There were almost 80,000 cohabiting couples without children recorded in that census; there were more than 85,000 cohabiting with children. A living arrangement seen as anything from bohemian to deviant a few decades ago is now unremarkable. In a housing and cost-of-living crisis, the home economics can work too. There are few more significant ways to commit to someone than by sharing a home – just know that mixing property and finances when you're not married can get tricky. Saving for a deposit One in three first-time-buyer homes now exceed €400,000 in value, according to the latest Banking and Payments Federation figures. These buyers, whose average age is now 36, are having to come up with a €40,000 deposit at least. With national average rents surpassing €2,000 a month, according to amassing a house deposit as an individual can seem unattainable. Living and saving together as a couple can speed things up. Committing to the future financial goal of home ownership bodes well for a relationship. An account where savings are combined can give a better return on lump sum deposit accounts or saving accounts. Just make sure the savings account is in joint names, that you both know the account password and have visibility of what's going in and out, says solicitor Niamh Moran of Carmody Moran solicitors. There is a move away from marriage. It's almost thought of as an old-fashioned concept. But marriage does bring certainty. You are potentially in a greyer area with cohabiting — Niamh Moran 'You would be minded to keep a record of what you are putting in, and make sure the money is in joint names. Know the amount, particularly if it has amassed to being a large sum,' says Moran. If either of you receives a large lump sum, such as redundancy or inheritance money, you could decide to ringfence it in a separate account. When buying a house together, your solicitor can itemise in a 'completion statement' who contributed what. If you split up, or if something happens to your partner, accessing funds in a bank account in their name only could be very difficult. As a cohabitant, you are not automatically their next of kin. 'There is a move away from marriage. It's almost thought of as an old-fashioned concept. But marriage does bring certainty. You are potentially in a greyer area with cohabiting; you are not in as solid ground,' says Moran. If you are living with someone and they die without a will, you have no automatic right to any share of 'their' money, no matter how long you have been together. 'Be aware. You are not a married couple, you don't have automatic entitlement, so in the event of a break-up or a death, the situation isn't entirely clear. So it's no harm to keep records,' says Moran. Moving in to 'your' place With rents through the roof, it's no wonder boyfriends or girlfriends are moving in. If you or your parents own the property, however, know that your love can acquire rights. Two types of law can apply in this situation, says solicitor Keith Walsh. The first has to do with gaining equity in the property – so if someone moves in and contributes to, or puts money into a property owned by someone else, they can be entitled to get it out, says Walsh. 'If your partner starts to pay the mortgage or contributes substantially to any structural-type repairs or direct costs in the home, they could be establishing some sort of equity interest in it,' he says. If, for example, a parent owns a property, and their daughter takes on the mortgage, she is gaining an interest in the property. If her partner puts money into the couple's joint account and that account is paying the mortgage, that potentially gives the partner an equitable interest in the property, says Walsh. If money is being paid towards the home, it's important to say that the purpose of the money is rent, he says. 'They can pay as much rent as they like and they are never going to acquire an interest in the property,' says Walsh. However, the rent is taxable, he says. Indirect contributions of labour or money towards renovation of the property can also count in a claim for equity in the property, says Moran. Financial dependence Where one cohabiting partner is financially dependent on the other, they can also make a claim for redress. This redress scheme is to protect financially dependent cohabitants should the relationship end due to a break-up or death. To qualify, you must have been living together with a partner in an intimate and committed relationship for at least five years, or two years if you have a child, and be financially dependent on them. Most cohabitants working without children are not going to be financially dependent on each other, says Walsh. 'You could argue, however, if you are staying in a property owned by your partner's parents, not paying rent, and you have forgone chances to buy a house, that you are financially dependent because you are getting free accommodation as part of the relationship,' he says. Having other housemates living in the home doesn't diminish the intimate and committed nature of your relationship either. Redress for cohabitants isn't automatic, however; you have to apply to the court, proving you are a financially dependent cohabitant. Those claiming redress must apply within two years of the breakdown of the relationship, or within six months of the grant of probate issuing where the cohabitant has died. Cohabitation agreement If you live together as partners and you do not intend to marry, you can protect your financial interests by entering into a 'cohabitation agreement'. This is where couples agree to opt out of the right to make a redress claim against each other. 'You are opting out of the redress scheme under the 2010 Cohabitants Act; you are waving those rights, basically,' says Moran. 'Quite often, [living arrangements] can develop into something much longer than anyone had intended.' A cohabitants' agreement can specify how you plan to separate your assets should the relationship come to an end. This way, you can agree what happens while things are amicable. 'If you are bringing another person into a property that is yours, or has been in your family, signing a cohabitation agreement would be highly advisable,' she says. It's not very romantic, but by signing this agreement at the outset, your beloved is agreeing not to make a claim on the property where you live. For the cohabitants' agreement to be valid and enforceable by the court, you must both get independent legal advice, and both of you must sign the agreement. 'By having everything down in black and white, these agreements don't tend to trouble the courts because everyone knows where they stand. If you enter into something very clearly, it does diminish the chances for dispute,' says Moran. 'I know those are very difficult conversations to have, but they are worthwhile having.' The difficulty can be that people fall into living together without anticipating the long-term consequences. Inheritance implications Cohabitants should know that if one of you dies without a will, you have no automatic right to any share of the other's property, money or possessions – no matter how long you have been together. Even if your partner has made a will, you will pay Capital Acquisitions Tax (CAT) at 33 per cent on gifts or inheritance over €16,250. Had you married, you would be automatically entitled to your spouse's whole estate, tax-free if there was no will, or two thirds of it if there was no will and they had children. Cohabitants should know that being in a long-term, committed relationship where you are not married means that the surviving partner can pay significantly more inheritance tax if the other dies. Thinking of breaking up? If you've been living together, you want to break up and you are worried about your blended finances, take legal advice before pulling the plug, says Moran. 'Sit down and look at it with someone impartially and plan for what might happen,' she says. If you have difficulty agreeing who is owed what, mediation will be less costly than legal proceedings. Couples can mitigate disputes by being clear-headed before they move in. 'I see these things when they get contentious. It causes stress and upset and takes time to resolve,' says Moran. 'The best thing is to deal with it at the outset and not let yourself drift into a situation because problems do arise.'
The Irish Sun
3 days ago
- The Irish Sun
We went from no savings to buying first €375k new home 20 mins outside Dublin at 25 with little-known €100k scheme help
BUYING a home in Ireland in the current climate can feel like an impossible task. But Casey Harris and her fiancé Alex Nugent have lifted the lid on how they went from no savings to going sale agreed on a €375,000 house in just one year. 6 Thrilled Casey and Alex went from having no savings to getting a foot on the property ladder 6 The former Dublin Rose is looking forward to moving into her own home later this year 6 Casey and Alex are very excited to see what the future holds 6 Artist's and Alex's new-build will look similar to above The thrilled couple will move into their new two-bedroom home in Trim, Co Singer and music teacher Casey said the couple made use of every assistance scheme they could when it came to getting on the property ladder - and reckons they Casey, 25, told the Irish Sun: 'We've been together for five years, we got engaged at the beginning of 2024 and in the midst of wedding planning we decided to knuckle down and look at buying a house. 'We didn't think it would happen as quickly as it did. 'We kind of went and made an appointment with the bank, spoke to a mortgage advisor in the bank to get an idea of what sort of figure we needed to be saving. 'We had it in our head that we needed a ten per cent deposit saved.' Casey said the couple weren't fully sure what they were getting themselves in for, but once they heard of schemes to assist first-time buyers, they started to believe their dream might just come true. She continued: 'At this point, we didn't even know where they were building houses; we hadn't even looked into that at all. 'Along the journey, we started to hear about all these schemes available to first-time buyers buying new-builds. 'The more we started looking into them, the more we were like, hang on, this is not as impossible as you might think looking at it from the outside. I'm 25 and bought my own home - here's how I used every scheme to make my dream come true 'Suddenly you've got this figure in your head, like we need to save about €40,000 deposit, but then you've got Help to Buy, which brings that down to €10,000, which is so much more doable.' But their first hopes of a home in Casey explained: 'So along the way we found out about these schemes and then we were looking into the affordable purchase scheme which is overseen by the local county council. 'We had applied for a house out in Donabate but we didn't end up getting one. 'So we took a bit of a knock there.' But it wasn't long before they were back on track. Casey said: 'Pretty soon after that we found the house that we ended up buying and it was eligible for the First Home scheme and the Help to Buy scheme which we then ended up using as well. 'It was mad how it all came together really quickly.' Casey, who represented Dublin at the Rose of Tralee, and fiancé Alex, who works in sales, first looked to the Help to Buy Scheme - an incentive helping first-time buyers get their first house. It allows those who qualify to claim back income tax and deposit interest retention tax paid to the State over the four years before making a claim. Casey and Alex were lucky enough to qualify for the full tax refund amounting to €30,000 - enough for a ten per cent deposit. This meant that the couple had to come up with the remaining €7,500 themselves. And they used the First Home Scheme - which is available to first-time buyers, self-builders, and fresh start applicants to get a foot in the door. It involves the provider handing over 20 per cent of the cost of a new home and in return, the State owns an equity share in the property which can be bought back if and when the homeowner chooses. Casey said the remaining difference of €50,000 that the couple needed to pay off represented about 13 per cent of the house, which was bought by the State under the equity scheme. She reckons they've got almost €100,000 in relief from the various schemes to be left with a €287,000 mortgage which she said she realises is 'still a lot'. Casey said the couple lived with their families while saving money for the house. She explained: 'By the time we applied for the mortgage, we had about €15,000 in savings to put towards everything. 'Once we started the mortgage application process, we continued to save over the couple of months that the whole process took. 'Obviously, you've got your stamp duty, legal fees, and everything else to pay as well, and then you've got to furnish the house and put your floors in too. 'There's no set figure, but I just think it's important that people know when you're using the schemes, you're not having to pay €30,000 or €40,000 out of your own pocket.' Casey told how the couple got advice from a mortgage broker who made the whole process a lot smoother. And she said not everyone trying to buy their own home even realises that the rent they're paying will be taken into account when it comes to mortgage eligibility. She added: 'It's hard to save money when you're renting, but a lot of people renting don't realise that the bank will take into account what you're paying every month. 'So if you're paying €1,200 a month in rent, they take that into account and say you'll be able to afford a €1,200 mortgage. 'Initially we went to the bank because I know nothing about the process from the off, I've no financial background whatsoever, I knew very little about the process. 'So we went to the bank and it was suggested to us that we could look at getting a mortgage broker, and it was the best decision we could have made. 'Our broker was unbelievable, he made the whole process such smooth sailing for us. 'So the house price was €375,000 - that's paid with the mortgage which was €287,000 and the schemes, we got €30,000 from Help to Buy off the deposit, and we used the First Home scheme that gave us the remaining money. 'That scheme is then that they own an equity share in your house and you can buy them out if you want to.' SHOP AROUND But the journey wasn't without setbacks, as the couple were refused a mortgage on one of their earliest attempts. But Casey said the trick to finding the right mortgage is to shop around as different banks have different rules. She said: 'We were refused a mortgage from one bank, and then two banks were giving us about €40,000 less than what we were looking for after they assessed our situation. 'We ended up getting what we were looking for from two other banks, so different banks look at things different ways, they all have their own systems, obviously when we got refused from the first bank we panicked. 'We had everything in order so for them to say no it was kind of a panic button. 'So it's important to know that there are several banks you can look at, your options are out there. 'That's what I'd be saying to anyone applying: apply to as many banks as possible and then you've got your pick of the bunch. 'We went from having no mortgage on a Monday to having two mortgages on a Friday.' WHAT IS THE HELP TO BUY SCHEME? IRELAND'S Help to Buy (HTB) Scheme assists first-time buyers in either: Purchasing a newly-built house or apartment Constructing a new home themselves This scheme is only applicable to properties priced at €500,000 or less, and you are required to reside in the property as your primary home. Under the Help to Buy Scheme, you can claim a refund of the income tax and Deposit Interest Retention Tax (DIRT) paid in Ireland during the four years preceding the year of your application. In July 2020, the HTB Scheme was expanded, introducing what is referred to as the Enhanced Help to Buy Scheme. To be eligible, you must be a first-time buyer purchasing or self-building a new residential property between January 1, 2017 and December 31, 2029. (The scheme was previously available for homes bought or built between July 19, 2016 and December 31, 2016, but claims had to be made by December 31, 2019). If you are purchasing or building the property with another person, they must also be a first-time buyer. You will not be eligible if: You have previously bought or built a house or apartment, either alone or jointly with someone else. This applies even if you are now separated or divorced and have relinquished your interest in the property. You have owned a property abroad. You do not intend to use the property as your main residence for at least five years after purchasing or building it (the HTB Scheme is not available for investment properties). You have not taken out a mortgage for the property. If you have inherited or been gifted a property but wish to buy or build a new home, you may still qualify for the HTB Scheme, provided you meet all the other eligibility criteria. And Casey's advice to young people who fear never owning their own home in Ireland is to keep your eye on the prize and make use of the schemes available. And she said that while it's easy to get stuck in the narrative that buying a house is near impossible, she urged young people not to lose hope. The future homeowner said: 'Don't get bogged down in all the narratives that you hear, it's not an easy thing to do by any means but if you set your sights on it and make yourself aware of the schemes that are out there to help you, keep your options open. 'We were dead set on living in Dublin because we work in Dublin and we wanted to buy a three-bedroom house, but we ended up going for a two-bedroom house in Meath. 'So you need to manage your expectations a little bit and be a little bit flexible about what you're looking for, how realistic it is for you once you have a rough idea of your mortgage and what you can afford and how the scheme will help you. 'Keep an open mind and don't get bogged down in the negativity, it is possible, and it's not as treacherous as it might be made out to be.' And the couple, who are set to be married in 2027, are beyond excited about their big move. Casey added: 'It's really exciting, it's a really, really exciting time, we're looking at being in the house before Christmas so that will be really special. 'We're getting married in 2027 and knowing that once we're in we can get into planning the wedding properly and even just having your own space, it's really exciting.' 6 Casey believes it's not impossible to buy a house in Ireland and shared her tips 6 The kitchen and dining area will look similar to this
Irish Daily Mirror
4 days ago
- Irish Daily Mirror
National property prices to increase by an average of 5% over the next 12 months
Estate agents expect national property prices to increase by an average of 5% over the next 12 months - down slightly from the 6% increase forecast in January. Over half of the agents - who are members of the Society of Chartered Surveyors Ireland (SCSI) - believe the key factor influencing house prices over the next 12 months will continue to be the supply - or more accurately the lack of supply - of new housing. A total of 88% of agents believe current residential property prices are expensive or very expensive – up 5% since January – while just 12% believe they are currently fair value, according to the latest SCSI Residential Mid-Year Market Monitor. The report also found that affordability challenges have intensified for first time buyers around the country and a couple on a combined income of €107K who want to buy an averagely priced new three-bed semi-detached house and have the 10% deposit will afford to buy in only one of five locations. In the two most expensive counties, Wicklow and Kildare, the couple will face shortfalls of €65,000 and €22,000 respectively for that house type. The average purchase price of a new three-bed semi in Meath is €482k; in Kildare €500k and €548k in Wicklow while in Cork it's €459k and €485k in Galway. When asked where they believe we are in the market cycle, 60% of respondents believe prices are increasing but will level off soon – while 18% believe they have peaked and should start to decline. Gerard O'Toole, President of the SCSI, said the report indicated mounting concern over the supply situation and by extension with a recent slowdown in home construction. 'Fifty-one percent of agents in our survey cite lack of supply as the main factor driving price inflation, up from 46% a year ago. In 2023, the figure was 35%, so we can really see the impact the lack of supply is having on house prices. 'At the same time, 70% of agents are reporting low stock levels of new and second-hand homes, again underscoring the persistent challenge of limited supply in the market.' 'Over the past five years more than half of agents have consistently highlighted low stock levels, stressing that constrained supply remains a fundamental issue impacting the market.' 'With the ESRI forecasting that 37,000 new homes will be built this year, well short of the Government's target of 41,000, the urgent need to address infrastructural shortcomings and for the Housing Activation Office to become fully operational as soon as possible cannot be overstated.' 'The other main factors, which our members believe are influencing price movements include the state of the economy (20%), while a further 16% said the continued availability of government support schemes such as Help to Buy and First Home Scheme are influencing house prices.' 'Looking at where we are in the market cycle, 78% of agents believe prices will level off soon or have already peaked. In the medium to long term, the only way to ensure prices stabilise is to ramp up supply' Mr O'Toole said. Sign up to the Irish Mirror's Courts and Crime newsletter here and get breaking crime updates and news from the courts direct to your inbox.
