First-time buyers continue to dominate the housing market as drawdowns reaches the highest level in 18 years, a Fine Gael Councillor has said.
As revealed in a report by the Bank and Payments Federation Ireland (BPFI), some 10,110 new mortgages, to the value of €2.854bn, were drawn down by borrowers between April and June. Among these, 6,300 were first-time buyers (FTBs) – the highest since 2007.
Cllr John Paul O’Shea said: “New properties comprised over a third of total mortgage drawdowns, with first-time buyers (FTBs) constituting 83% of these, compared to 71% for second-hand properties.
“Fine Gael introduced the Help to Buy Scheme in 2017 to assist first-time buyers in County Cork and across the country by providing up to €30,000 as an income tax rebate for deposit costs.
“According to the latest data from the Banking and Payments Federation Ireland (BPFI), approved mortgages have increased by 2.2% in volume and 3.3% in value compared to the same period last year.
“In June, 4,480 mortgages were approved, with 2,740 for FTBs, making up over 61% of the total, while mover purchasers accounted for 980, or nearly 22%.
“The value of mortgage approvals declined by 1.8% month-on-month and by 1.1% year-on-year. The BPFI data shows that FTBs continue to lead the market, with FTB drawdown volumes reaching their highest Q2 level since 2007 at 6,300.
“New properties, including self-builds, made up more than a third of mortgage drawdowns between April and June, an increase from 30.4% in the same period last year.
“FTB mortgages on new properties rose by 19.2% to 2,404, accounting for over 83% of new property mortgage drawdowns, reflecting strong momentum in new home construction and Fine Gael FTB incentives.
“Drawdowns on second-hand properties fell by 2.6%, with FTB mortgages on these properties decreasing by 1.5%, making up 71% of mortgage drawdowns.
“Conversely, opposition parties have no plans to increase the urgently needed housing stock. Remarkably, Sinn Féin and other opposition parties aim to even abolish the Help to Buy and First Home Schemes that have worked so well for people in County Cork and across the country,” Cllr O’Shea concluded.
