Government's own housing development finance company grows approvals to €3bn

Home Building Finance Ireland has approved funding for a total of 15,186 new homes in 206 developments, across 25 counties

Dara Deering, chief executive of Home Building Finance Ireland, said the steady growth in loan approvals reflects the 'ongoing appetite among small, medium and large housebuilding companies for finance to help meet the demand for new homes'.

Home Building Finance Ireland (HBFI), the Government vehicle set up to provide loans for housing developments, has seen its loan approvals grow by €336m during the first six months of the year.

The company’s total loan approvals stands at just over €3bn since it commenced operations at the start of 2019. Of that total, €2.25bn has been drawn down for 135 developments, supporting 12,251 homes where construction is in progress or has completed.

HBFI typically expects a time lag of between three and six months between a loan being approved and its first drawdown.

As of the end of June, HBFI had approved funding for a total of 15,186 new homes in 206 developments, across 25 counties. A total of 5,514 HBFI-funded units have already been sold, with a further 3,338 contracted for sale or sale-agreed as at the end of June 2025.

The size of the average development approved is 74 units

The value of individual loans range from €1m to €113m, with an average size of €14.6m.

HBFI chief executive Dara Deering said the steady growth in loan approvals reflects the “ongoing appetite among small, medium and large housebuilding companies for finance to help meet the demand for new homes”.

Of the total number of homes funded by the HBFI, 48% are for owner-occupiers, 39% are social/affordable housing, while 8% are for renters. The remaining 5% are set aside for local authorities to acquire.

The HBFI said the results showed a strong demand from small- and medium-sized housebuilders, with 83% of the loan amounts approved to date valued at €20m or less.

Additionally, 88% of loans approved to date by HBFI provide more than 65% of the project costs, showing “this demand for funding reflects the continued equity constraints facing many housebuilders”, the company said.

HBFI is a private company with its own board operating on a commercial basis, but wholly owned by the minister for finance.

Finance minister Paschal Donohoe said he remained “satisfied that HBFI continues to fulfil its functions and remains a necessary part of the debt-funding market”.