Extra €400m ISIF funding has potential to deliver 5,000 homes, says Government

Irish banks also commit to making €200m available in addition to the increased ISIF funding

Mon, 22 Dec, 2025 - 00:05

Martin Claffey

A €400m extension to the Ireland Strategic Investment Fund (ISIF) funding programme has the potential to deliver 5,000 homes, the Government said on Monday.

The Government has doubled ISIF’s equity for homebuilding investment programme to €800m since it was announced in July 2023, with the original €400m close to completion. The new allocation will build on ISIF’s existing housing related commitments of €2.5bn which has supported the delivery of over 19,000 new homes and is targeting the delivery of over 25,000 new homes by 2030.

“I welcome the national banks who today are committing to make available €200m in additional equity above the €400m from ISIF. This demonstrates the impact of using targeted State investment to crowd in private capital and expand the pool of funding available," said Tánaiste and finance minister Simon Harris.

“Together, this €600m of equity capital will unlock up to €2bn of finance for housing developments across the country, with the potential to deliver up to 5,000 homes. The commitment from the banks will increase the impact of ISIF investments and will also support a more sustainable long-term financing ecosystem for the Irish homebuilding sector.”

Housing minister James Browne said the additional funding will enable many more small and medium house-builders to get involved in home construction.

Banking & Payments Federation Ireland chief executive Brian Hayes said: "Today’s announcement, which will see AIB and Bank of Ireland commit to investing further equity funding in housebuilding, while working closely with ISIF, will unlock additional finance for homebuilders. This will help accelerate delivery of viable projects and ensure that equity and debt solutions work together to accelerate housing delivery."