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BPFI Housing Market Monitor shows persistent lack of supply has resulted in potential buyers renting for longer

30th May 2018

Banking & Payments Federation Ireland (BPFI) today published the BPFI Housing Market Monitor for Q1 2018. 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 Chief Economist, Dr Ali Uğur describes how the persistent lack of housing supply seems to be contributing to demographic changes within the population in Ireland leading to potential buyers renting for longer:

“A combination of Eurostat survey data and BPFI loan level data show that the gap between the average age of leaving the parental home and the average age of a first-time buyer (FTB) has increased from 5.6 years in 2008 to around 7.6 years in 2017.  During this period the average age of an FTB has increased from 31 in 2008 to 33.9 in 2017. In addition, we see that in 2004 nearly 60% of FTBs in Ireland were 30 years or younger, whereas in 2016 this proportion had declined to around 29%. During the same period, the share of FTBs accounting for borrowers between 31 and 40 has increased from 34% to 60%. A comparison with the UK shows that during the same period, the share of FTBs accounting for people 30 years or younger increased from 49% in 2008 to 54% in 2016.”

In his commentary Dr Ugur also looks at the most recent mortgage lending figures from BPFI which show both a value and volume increase in mortgage drawdowns in Q1 2018.

“BPFI data show that there were 7,879 mortgage drawdowns, valued at €1,704 million, in Q1 2018. Mortgage drawdown activity increased in volume terms by 13.5% year-on-year and increased in value terms by 22.4% over the same period. The average purchase mortgage drawdown in Q1 2018 increased by 7.9% year-on-year to €216,251. The average FTB drawdown was €216,458, up by 11.6% year-on-year, while the average mover-purchase drawdown rose by 5.4% year-on-year to €253,072.

Read the report 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

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