Latest news with #ConallMacCoille
The Journal
2 days ago
- Business
- The Journal
Cash now makes up just €1 out of every €8 that's spent in Ireland
CASH NOW REPRESENTS only one-in-eight Euro spent in Ireland. New figures from Bank of Ireland show a 'stark' change from the period preceding the Covid-19 pandemic, during which cash accounted for one third of all transactions. The bank also said that ATM withdrawals have continued to decline. They were down 3.6% in the year to June. Elsewhere, credit and debit card spending by Bank of Ireland customers was up 5.7% in June compared to the same month last year. This is well ahead of Consumer Price Index inflation at 1.8%. The credit and debit card data suggests that consumer spending is expanding faster than Bank of Ireland's current forecast for a 2.4% real gain, closer to the upwardly revised 2.9% seen last year. This reflects Ireland's 'rapid pace of job creation and pay growth' are driving consumer spending upwards. Advertisement 'The figures indicate substantial real price adjusted gains for Irish households and little spending impact from US-tariff related uncertainty and the recent dip in consumer confidence,' a spokesperson for Bank of Ireland said. Holiday related spending and electrical goods have driven expenditure higher. Services spending grew by 5.6% in June year on year, while accommodation spednifn was up 4.3% on the year, and car rentals by 16%. Electrical goods sales were up 16%. Clothing sales were down 2.1%. Bank of Ireland's Chief Economist Conall Mac Coille said of the figures, 'Despite global uncertainties and a dip in consumer confidence, Irish households continue to spend confidently, supported by solid job creation and income growth. The shift away from cash also continues, with ATM withdrawals down and digital payments now dominating everyday transactions.' The Central Statistics Office's annual revisions to Ireland's national accounts data revealed that consumer spending expanded at a substantially sharper 2.9% pace in 2024 (or 7% in nominal terms) than the 2.3% initially estimated. The revision is consistent with other indicators such as the 7.3% rise in VAT receipts to €23bn in 2024 and 7.5% rise in gross household disposable incomes. Household savings also remain strong – the latest Central Bank data shows household deposits grew by 6.5% to €165 billion in May, close to the fastest pace in seventeen years (excluding the pandemic period). Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
RTÉ News
2 days ago
- Business
- RTÉ News
Credit and debit card spending rose by 5.7% in June
Credit and debit card spending rose by 5.7% in June compared to the same month last year, according to new figures from Bank of Ireland. The bank said the data shows consumer spending remained robust last month and "well ahead" of the rate of inflation of 1.8%. The figure is down from the 6.5% year-on-year increase recorded in card spending by Bank of Ireland customers in May. However, BOI said the June numbers indicate "little spending impact from US-tariff related uncertainty and the recent dip in consumer confidence." Holiday spending was up sharply last month, with accommodation up 4.3% year-on-year, while spending on car rentals increased by 16%. The bank said the retail sector was helped by a spike in electrical goods sales, which rose by 16%. While clothing sales were down 2.1% on the year, "albeit reflecting that consumer prices for clothing (-2.4%) and footwear (-1.8%) have fallen over the past year." Notably, the move away from households using physical cash is continuing. Decrease in ATM withdrawals The BOI data shows ATM withdrawals were down 3.6% on the year, with cash now representing just one-in-eight euro spent. The report said the data suggests consumer spending is "expanding faster than Bank of Ireland's current forecast for a 2.4% real gain in 2025, closer to the upwardly revised 2.9% pace seen in 2024." Bank of Ireland's Chief Economist, Conall Mac Coille, said the figures show that Irish consumer spending "remains resilient and robust." He said the growth was driven by strong holiday and retail activity, especially in accommodation, car rentals, and electrical goods. Despite the global uncertainties and a dip in consumer confidence, Mr Mac Coille said Irish households "continue to spend confidently, supported by solid job creation and income growth." He also noted that the indicates that "the shift away from cash also continues, with ATM withdrawals down and digital payments now dominating everyday transactions."
The Journal
6 days ago
- Business
- The Journal
Housing prices jump as completions predicted to fall 'well short' of units required
NATIONAL ASKING PRICES are up 7% over the year – with some counties seeing jumps of up to 19%. MyHome's report, produced alongside Bank of Ireland, on asking prices for homes in Ireland has been released today. It reports on Q2 of 2025. It shows that asking prices for homes in Galway have reached €350,000 in an increase of close to 13% on the year previous. In Donegal, asking prices climbed up to 19% to an average of €255,000. In Leitrim, there was an increase of just over 13% since the year previous, with asking prices averaging out to €198,000. On top of the increase in asking prices across the country, the report also found that typical residential transactions are being settled for 7.5% above the original price. This trend has been driven by several factors, it reported, which include 'significant increases' in both the volume and value of mortgage approvals, persistently inadequate supply, and the loosening of mortgage lending rules. Meanwhile, the report found asking prices nationally rose by 4% on the quarter, by 2.2% in Dublin and by 5.4% in the rest of the country- meaning the median asking price for new instructions nationally was €395,000 in Q2. In Dublin it was €495,000 and in the rest of the country it was €340,000. Housing completions Advertisement The average mortgage approval in May was €337,000, up 6.7% on the year, and the average first time buyer borrowed 3.4 times their income in 2024. This is up from 3.2 in 2022. The report noted that although home completions are likely to improve this year on last year, the supply will still fall 'well short of the demand'. The author of the report, Chief Economist at Bank of Ireland Conall MacCoille, added that alongside higher mortgages and properties for sale tending to be sold for a significantly higher sum than asked, average mortgage approval in may this year was up 6.7% on the year. The report stated that this was helped by the annual pay growth of 5.6% in the Irish economy. There were 43,070 mortgage approvals in the year to May, up 10.5% on 2024. One in six properties is sold by 20% or more over asking price, indicating that competition for homes remains fierce. 'Another factor at play is loosening of the Central Bank mortgage lending rules. The average first-time-buyer borrowed 3.4 times' their income in 2024, up from a 3.2x multiple in 2022. This change has pushed up house prices by €15,000 to €20,000,' MacCoille said. He said that Irish house price inflation is more likely to return to mid-single digit category with a steady proportion – just under 50% – of first time buyers taking out a mortgage between 3.5 to 4 times their income He said that some improvement in home completions was likely in 2025. 'The '4Dublin Housing Supply Pipeline' figures, the only survey of current homebuilding activity, shows the number of houses under construction in Dublin at end-2024 up 19% on the year.' The figures indicate that at end-2024 there were 16,260 apartments and 3,185 houses under construction on 188 active sites in the capital, up 24% and 19% respectively on late 2023. Related Reads 'They're still rooted in the last war': Taoiseach says banks are not lending enough to Irish builders Explainer: Why does the Government want to overhaul Rent Pressure Zones? However, he warned that attention should focus on difficult problems surrounding build costs and the viability of apartment development in Ireland over the medium term. 'Whatever the outcome for housing completions in 2025, it will fall well short of the 50-60,000 units required.' Newly introduced rent controls would likely serve to eliminate the two-tier rental market, as RTB figures from end-2024 show new tenants were paying on average €240 per month in rent more than those in existing tenancies, MacCoille added. The average time to sale agreed is now 2.6 months. This is close to a historic low and 'indicative of a very tight market'. 'RTB data indicates average monthly rents were €1,670 at end-2024, up 5.5% on the year – close to the softest pace of rent price inflation in almost four years. Rent reforms will likely mean the pricing gap between new and existing tenancies will be eliminated.' It was noted that the threat of US tariffs did not put a dent into the demand for housing within the country. The median asking price for new instructions nationally was €395,000 in Q2. In Dublin it was €495,000 and in the rest of the country it was €340,000. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Extra.ie
6 days ago
- Business
- Extra.ie
Central Bank changes send housing prices soaring by €20k
Changes to Central Bank mortgage lending rules have seen housing prices increase by up to €20,000, a new report has found. In 2023, the Central Bank loosened lending rules to allow first-time buyers to borrow four times their income, up from the previous cap of 3.5 times their earnings that was introduced in 2015. The latest report from and Bank of Ireland has found that asking prices for houses nationwide went up by 7% over the last year. This has been blamed on a lack of supply driving intense competition in the market and the impact of looser borrowing limits. Report author Conall MacCoille, chief economist at Bank of Ireland, said: 'One in six properties is sold by 20% or more over asking price, indicating competition for homes remains fierce. Pic: File Report author Conall MacCoille, chief economist at Bank of Ireland, said: 'One in six properties is sold by 20% or more over asking price, indicating competition for homes remains fierce. Another factor at play is loosening of the Central Bank mortgage lending rules.' The typical first-time buyer borrows 3.4 times their income in 2024, up from 3.2 times their income in 2022. Mr MacCoille said this change has pushed up house prices by €15,000 to €20,000. He added: 'That said, the process of rising leverage may be coming to an end. The proportion of first-time buyers taking out a mortgage with a 3.5-to-4-times loan-to-income multiple is now steady, at just under 50%. 'If so, Irish house price inflation is more likely to return to the mid-single-digit territory.' Changes to Central Bank mortgage lending rules have seen housing prices increase by up to €20,000, a new report has found. Pic: Getty Images Outside Dublin, asking prices rose 7.9%, while rates in the capital were up 5.1%, the MyHome report, compiled in association with the Bank of Ireland, found. It said demand for properties is still a notable feature of the market, with the typical transaction being settled for 7.5% above the asking price. This trend has been driven by factors including significant increases in the volume and value of mortgage approvals and the loosening of mortgage lending rules. The median asking price nationally was €395,000 in the second quarter of the year. In Dublin it was €495,000 and in the rest of the country it was €340,000. Asking prices rose by 2.2% in Dublin and by 5.4% in the rest of the country. Joanne Geary, managing director of MyHome, said it is 'promising' that the threat of EU-US tariffs has not had a major negative effect on the market to date. However, she noted that the volatile geopolitical climate is 'particularly unhelpful for the economy'.
Irish Times
6 days ago
- Business
- Irish Times
Continuing supply crisis sees house prices rise 7% over last three months
A continuing squeeze on the supply of homes boosted property prices by 7 per cent in the three months to the end of June, new figures show. Property website said house sellers sought an average asking price of €395,000 in the second quarter. Its quarterly assessment pointed to strong demand and 'persistently inadequate supply' for the latest rise in the cost of buying a home. 'The best that can be said about Ireland's housing market is that the supply situation isn't getting materially worse,' it said in a report published on Monday. READ MORE 'At end-June 2025 there were 12,563 properties listed for sale on MyHome, up slightly, by 1 per cent, compared with the same period of 2024.' MyHome tracks asking prices, which is the price at which homes are first offered for sale on the market. The report described the housing market as 'very tight'. Conall Mac Coille, Bank of Ireland chief economist and the report's author, predicted house building this year will fall short of the 50,000 to 60,000 new homes needed annually to counter the supply crisis. 'Attention should focus on difficult problems surrounding building costs and the viability of apartment development in Ireland over the long term,' he argued. However, the report noted that official figures show the number of sales is rising. So far this year, 22,000 homes have changed hands, an increase of 2 per cent, according to the Property Price Register, compiled by the Revenue Commissioners. Those properties sold for an average of €445,000 each, noted MyHome, which is owned by The Irish Times. Its report, published in association with Bank of Ireland, showed that over the three months to the end of June, properties sold for 7.5 per cent more than the asking price sought by sellers. Those asking prices averaged €395,000 nationally. In Dublin, sellers sought €495,000 in the three months to the end of June, 5.1 per cent more during the same quarter in 2024. In the rest of the Republic, owners upped their demands by almost 8 per cent to €340,000 on average, the figures show. MyHome does not expect Dublin's slower rate of inflation to last long as buyers ended up paying 9 per cent more than asking prices, indicating tough competition for homes. Regional prices include the capital's commuter belt in counties Kildare and Meath, where asking prices rose 8.3 per cent, and in Co Wicklow where vendors sought 9.6 per cent more than during the same period last year. Recent easing of rules governing how much banks can lend to homebuyers contributed to increased demand and added between €15,000 and €20,000 to prices, Mr MacCoille said. MyHome's figures followed Saturday's Community Action Tenants' Union protest in Dublin where demonstrators said that owning a home had become 'completely inaccessible'. Rents averaged €1,670 per month at the end of 2024, up 5.5 per cent on the year, while the recent Consumer Price Index showed they increased 5.2 per cent in the 12 months to May, MyHome noted. Joanne Geary, the company's managing director, noted that the risk of an EU-US trade war erupting as a result of President Donald Trump's tariff threats had not dented the Irish property market. 'As ever, we need to focus on what we can actually control, which means continuing efforts to significantly increase our national stock of properties, and urban apartments in particular,' she said. Rival website recently reported that house prices rose 12.3 per cent in a market 'starved of supply'. Estate agent, Sherry FitzGerald calculated that the number of homes to rent fell by 43,000 over the last five years.
