BPFI Housing Market Monitor Q4 2015

Banking & Payments Federation Ireland (BPFI) today published the BPFI Housing Market Monitor for Q4 2015. The monitor draws on a range of published data under the three key headings of housing supply, housing prices and rents and housing transactions for its assessment of the current state of the housing market.

In his commentary accompanying the report, BPFI’s Economist and Head of Accounting & Tax, Ali Uğur, highlights the ongoing issue of housing supply and the impact which the ‘mismatch’ between current demand and supply is having on the rental sector:

“The mismatch between current demand plus additional pent-up demand and the supply of new homes has put significant upward pressure on rental accommodation availability as well as rent levels in 2015, particularly in Dublin. Rents have now risen by an average of 32% since their lowest point in 2012. Nationally there were just 3,600 homes available to rent on 1 February 2016; the lowest total since Daft.ie first reported rent listings in 2006. On the same date in Dublin, there were only 1,400 properties were available to rent whereas the average has been around 5,200 properties available to rent between 2008 and 2012.”

His analysis concludes by outlining how the current shortage in supply is set to continue in the short term and likely to maintain pressure on both housing availability and rents:

“The general consensus amongst housing market stakeholders is that there is a medium to long-term requirement to build approximately 25,000 housing units per annum nationally. However between 2014 and 2016 we will have built less than half of this estimated demand even with increased residential building activity. This significant gap in housing supply is likely to further reduce the availability of housing units both for buyers and renters with increased pressure on rent prices particularly in Dublin.”

Ends/

The BPFI Housing Market Monitor is published quarterly and can be viewed on the BPFI website here.

Note: Banking & Payments Federation Ireland (BPFI) is the voice of banking and payments in Ireland, representing over 70 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.

Contact: Jillian Heffernan, Head of Communications, 087 9016880

Mortgage Approvals – January 2016

Banking & Payments Federation Ireland (BPFI) has published the latest figures from the BPFI Mortgage Approvals Report for the three months ending January 2016.

The following are the key elements:

  • A total of 2,133 mortgages were approved per month, on average, in the three months ending January 2016 – some 1,067 (50%) were for first-time buyers (FTBs) while mover purchasers accounted for 630 (29.5%).
  • The number of mortgages approved fell by 14.7% year-on-year and by 10.2% month-on-month.
  • The value of mortgages approved per month, on average, in the three months ending January 2016 was €406 million – of which €190 million (46.8%) was accounted for by FTBs and €151 million (37.2%) by mover purchasers.
  • The value of mortgage approvals fell by 13.6% year-on-year and by 9.4% month-on-month.

Both re-mortgage and top-up mortgage approvals grew on a year-on-year basis with re-mortgage (or switching) volumes more than doubling.

Data collection for the BPFI Mortgage Approvals Report began in September 2012 covering the period from January 2011 onwards in respect of the market’s main mortgage lenders. The BPFI Mortgage Approvals Report January 2016 as well as the time series data file is available on the BPFI website here.

All figures are based on the three-month moving average. Year-on-year compares the average for the three months ending January 2016 with the three months ending January 2015. Month-on-month compares the average for the three months ending January 2016 with the three months ending December 2015.

Note: Banking & Payments Federation Ireland is the voice of banking and payments in Ireland, representing over 70 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.

Contact: Jillian Heffernan, Head of Communications, 087 9016880

IFRS 9 Breakfast Briefing

Banking & Payments Federation Ireland (BPFI), in association with PwC, will host a breakfast briefing on IFRS 9 on Monday 7th March 2016, from 9.00am – 11.30am, in The Westin Hotel, Westmoreland Street, Dublin 2.

The IASB issued the complete version of IFRS 9 which replaces most of the guidance in IAS 39 and also includes a new impairment model which will result in earlier recognition of losses.

With the IFRS 9 deadline less than two years away, it is expected that by the end of 2016, many financial banks will have completed the design and build of models, and have validated models in order to get approval prior to implementation.

This seminar will provide details on IFRS 9 impairment requirements as well as various approaches to calculating Expected Credit Losses with a particular focus on executing different phases of IFRS 9 implementation as well as its interaction with regulatory capital and credit risk management.

In addition to IFRS 9, the seminar will cover relevant topics on FRS101/102 for banks and subsidiaries and a brief update on IFRS 16 leases.

New Mortgage Lending in Q4 2015

  • 8,103 mortgages to a value of €1.45 billion drawn down in Q4 2015
  • Loan volumes in Q4 2015 up 6.9% year-on-year, 10.2% quarter-on-quarter
  • 27,324 mortgages to a value of €4.9 billion drawn down in 2015

The Banking & Payments Federation Ireland (BPFI) Mortgage Drawdowns report published today, shows that 8,103 new mortgages to the value of €1.45 billion were drawn down by borrowers here during the fourth quarter of 2015. This brings to 27,324 the total number of mortgages issued in 2015 to the value of €4.9 billion.

These latest figures represent an increase of 10.2% in volume and 7.9% in value compared to the previous quarter (Q3 2015). They also represent an increase of 6.9% in volume and 8.2% in value on the corresponding fourth quarter of 2014. Over 2015 as a whole, the number of mortgage drawdowns grew by 23.5% with the value increasing by 26.2%.

First-time buyers (FTBs) remain the single largest segment by volume (47.1%) and by value (45.1%). Together, FTBs and mover-purchasers accounted for 85% of the total value of mortgages drawn down.

The volume and the value of re-mortgage loans (switching) continue to increase – albeit from low levels: at €126 million in value this reflects growth of 83.1% quarter on quarter and 183% year on year.

The following graph presents the trend in the volume of mortgage approvals and mortgage drawdowns over time.
Drawdowns image graph Q4 2015

The BPFI Mortgage Drawdowns report can be viewed on the BPFI website here.

Note: Banking & Payments Federation Ireland is the voice of banking and payments in Ireland, representing over 70 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.

Media Contact: Jillian Heffernan, Head of Communications, 087 9016880

BPFI Mortgage Drawdowns Q4 2015

The Banking & Payments Federation Ireland (BPFI) Mortgage Drawdowns report published today, shows that 8,103 new mortgages to the value of €1.45 billion were drawn down by borrowers here during the fourth quarter of 2015. This brings to 27,324 the total number of mortgages issued in 2015 to the value of €4.9 billion.