First-time buyers are leading a surge in mortgage approvals, with April figures showing significant growth in both value and volume as Ireland’s property market maintains momentum despite ongoing challenges.
New data from the Banking & Payments Federation Ireland reveals that mortgage approvals reached €1.5 billion in April, representing a 14% increase in value and 4% rise in numbers compared to April 2024. The timing of Easter may have contributed to the strong April performance, as the holiday fell in April this year versus March in 2024.
First-time buyers dominated the growth, securing €965 million in approvals, marking a 12% increase in value and 3% rise in numbers compared to the same period last year. This demographic continues to drive market activity as new entrants seek to access homeownership despite challenging affordability conditions.
The average mortgage approval for first-time buyers has reached €330,123, representing an 8% increase from the previous year. This figure reflects both rising property prices and buyers’ increased borrowing capacity in response to market conditions.
Re-mortgaging activity showed particularly strong growth at €151 million, though this comes from a relatively low baseline. The increase suggests homeowners are actively seeking better rates or accessing equity as interest rate conditions evolve.
Second and subsequent buyers showed more modest growth, with approvals increasing just 1% in value to €374,823 on average, while the number of approvals actually declined by 6%. This weaker performance among repeat buyers reflects the ongoing constraints in the existing homes market, where supply remains critically low.
Year-to-date figures paint an even stronger picture, with overall approval values up 16% compared to the same period in 2024. First-time buyers have increased their approvals by 13%, while second and subsequent buyers are up 9%.
Financial services firm Davy noted that the April trends align broadly with first-quarter performance and are unlikely to significantly impact their mortgage market forecasts. The firm maintains its projection of €14 billion in overall mortgage drawdowns for 2025, up from €12.6 billion in 2024, with 3% growth expected in the stock of mortgage balances.
The disparity between first-time and repeat buyer activity highlights ongoing structural issues in Ireland’s housing market. While new buyers continue entering the market in strong numbers, the lack of available existing homes is constraining activity among those looking to trade up or relocate.
The strong approval figures suggest continued confidence in the Irish property market despite broader economic uncertainties. However, the sustainability of this growth will depend on factors including housing supply, interest rate movements, and overall economic conditions as the year progresses.