First-time buyer mortgage approvals reached record annualised high of €9 billion in February, while mover purchase volumes continued to decline – latest figures from BPFI
• FTB approvals grew by 14.7% and 19.8% year on year in volume and value terms
• Mover purchase volumes dropped to 695, the lowest February level since 2016
Wednesday 27th March 2024 – Banking & Payments Federation Ireland (BPFI) has today published the latest figures from the BPFI Mortgage Approvals Report for February 2024. The following are the key elements:
- A total of 3,582 mortgages were approved in February 2024 – first-time buyers (FTBs) were approved for 2,171 mortgages (60.6% of total volume) while mover purchasers accounted for 695 (19.4%).
- The number of mortgages approved rose by 9.8% month-on-month and by 6.0% compared with the same period last year.
- Mortgages approved in February were valued at €1,012 million – of which FTBs accounted for €640 million (63.3%) and mover purchasers for €221 million (21.8%).
- The value of mortgage approvals rose by 10.0% month-on-month and by 7.0% year-on-year.
- Re-mortgage/switching activity rose by 0.5% in volume terms year-on-year and fell by 10.7% in value in the same period.
Speaking on the publication of the data, Brian Hayes, Chief Executive, BPFI stated: “Our latest report shows that the mortgage market regained positive momentum in February with 6% year-on-year growth in mortgage approval volumes and 7% year-on-year growth in approval values. First-time buyers (FTBs) continued to drive the market, with 2,171 FTB mortgages approved in February valued at €640 million, a jump of 14.7% and 19.8% year on year in volume and value terms and the highest February levels since the data series began in 2011. In annualised terms, there were 30,821 FTB mortgage approvals valued at almost €9 billion (€8,971 million) in the twelve months ending February 2024, the highest annualised levels since the data series began in 2011. We can also see that FTB demand remains very strong with 12,355 Help to Buy applications to the Revenue Commissioners in the first two months of the year.
“By contrast, we seen a continued decrease in mover purchase volumes, which dropped by 8.4% year on year to 695, the lowest February level since 2016. This has ongoing implications for the supply of secondhand homes to the market which has being slowing down in recent months and the Central Statistics Office reported a 6% year on year drop in household purchases of existing homes in January.”
Mr. Hayes continued: “However, the supply pipeline for new housing expanded significantly with 7,056 new dwellings commenced in the first two months of 2024, 72% higher than in the same period of 2023, according to the Department of Housing, Local Government and Heritage. About half (51%) of the new housing starts in the year to date were for scheme houses and 40% for apartments.”
This is available here.
The BPFI Mortgage Approvals report data series since February 2011 is available to download here.
ENDS/
Note: Banking & Payments Federation Ireland (BPFI) represents the banking, payments and fintech sector in Ireland. Together with its affiliates, the Federation of International Banks in Ireland, and the Fintech & Payments Association of Ireland, BPFI has over 125 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.
Contact: Fiona Murphy, Head of Communications, 087 9740046, fiona.murphy@bpfi.ie or Jillian Heffernan, Director of Communications, 087 9016880, jillian.heffernan@bpfi.ie.
