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RTÉ News
6 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
07-07-2025
- 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
07-07-2025
- 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 Daily Mirror
07-07-2025
- Business
- Irish Daily Mirror
House asking prices soar by average of 7% in last year
Asking prices for houses nationwide went up by 7% over the year, according to new analysis. Asking prices outside Dublin rose by 7.9% while rates in the capital were up 5.1%, according to the latest MyHome property report compiled in association with Bank of Ireland. It says strong demand for properties is still a notable feature of the market, with the typical residential transaction being settled for 7.5% above the asking price. This trend has been driven by several factors including significant increases in both the volume and value of mortgage approvals, persistently inadequate supply, and the loosening of mortgage lending rules. Asking prices nationally rose by 4% on the quarter, by 2.2% in Dublin and by 5.4% in the rest of the country. This means 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. 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, noting the volatile geo-political climate is "particularly unhelpful for the economy", she added: "It remains to be seen what the coming months will bring. "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." The author of the report, Conall MacCoille, chief economist at Bank of Ireland, said: "Uncertainty following President Donald Trump's announcement of 'Liberation Day' tariffs hasn't been sufficient to dent Ireland's housing market." The analysis also found the average mortgage approval in May was 337,000, up 6.7% on the year. Mr MacCoille said: "Meanwhile, 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 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 3.5-4x loan-to-income multiple is now steady, at just under 50%. "If so, Irish house price inflation is more likely to return to mid-single digit territory." The report predicts an improvement in home completions in 2025 - with the number of houses under construction in Dublin at end-2024 up 20% on the year. However, Mr MacCoille warned it will still "fall well short" of the 50-60,000 units required. The average time to sale agreed is now 2.6 months, again close to a historic low and indicative of a very tight market.
