House shortage to drag on mortgage lending

Mortgage lending values are expected to remain stable at just over €3bn this year, with growth slowed by a shortage of available properties and the lingering arrears crisis rather than a lack of available credit, one market expert has estimated.

Data from the Irish Banking Federation show 18,520 mortgages were approved in 2013, a rise of just over 4% on 2012. The combined value of such lending — the vast majority of which was for house purchases — amounted to €3.2bn.

In December alone, 1,762 mortgages were approved, to the value of €317m — 93% of which were for house purchases.