Number of first-time-buyer drawdowns hits new 26,000 peak with value of over €7.2bn  

Average first-time-buyer mortgage drawdown rose to €282,084, the highest level since the data series began in 2003

The average first-time-buyer mortgage drawdown increased to €282,084, up from €264,621 a year earlier. Picture: Denis Minihane

The slowdown in mortgage drawdowns and approvals due to a major fall in the number of homeowners switching their mortgages continued into December, new figures show.

A total of 2,793 mortgages were approved in December, more than 60% of which were for first-time buyers. The figure represents a 33.5% drop compared to November and a 23.2% fall compared to December 2022.

According to the Banking Payments Federation of Ireland (BPFI), the situation was similar for the final quarter of the year, with mortgage approvals dropping 27.1% compared to the fourth quarter of 2022. The volume of re-mortgage and switching fell by 79.6% year on year.

However, the number of first-time-buyer drawdowns in the final quarter reached a new peak at almost 26,000, valued at over €7.2bn, the highest annual levels since 2007. 

The average first-time-buyer mortgage drawdown increased to €282,084, up from €264,621 a year earlier. This is the highest level since the data series began in 2003 and the 10th consecutive year in which it increased.

Brian Hayes said latest mortgage data for 2023 shows another strong year for first-time buyers. Picture: RollingNews.ie

“Our latest mortgage data, which provides an annual picture for 2023, shows another strong year for first-time buyers [FTBs], who have dominated the mortgage market in recent months," said BPFI chief executive Brian Hayes.
Nonetheless, we’ve seen an overall slowdown in both mortgage drawdown and approval activity, largely driven by a sharp drop in re-mortgage/switching activity.

Separate data from the CSO, published yesterday, shows the number of new homes completed last year rose 10% to 32,695. In the final quarter there were 10,289 completions, a rise of 13% from the fourth quarter of 2022.

"We have seen housing output increasing significantly in the past two years and the potential output for 2024 looks encouraging, evident from the commencement activity, which reached almost 33,000 units in 2023. Increasing supply should also help average property price inflation ease during the year,” Mr Hayes said.