05 Oct 2022

Over a quarter of first-time buyers were aged 30 or under last year - report finds

Over a quarter of first-time buyers were aged 30 or under last year - report finds

A new report published today shows just over a quarter of first-time buyers were aged 30 or under last year.

The report was conducted by Banking & Payments Federation Ireland.

The number of first-time buyers (FTBs) aged 30 or under more than halved in the last 16 years falling from 60% in 2004 to 27% in 2020.

Some 60% of FTBs were no more than 30 years old in 2004, according to the Department of Housing, Local Government & Heritage.

Eight years later, that proportion had dropped to 42%, the figure further fell to 27% in 2020.

The mortgage market profile report looks at a range of factors including a regional breakdown of the market, the age profile of borrowers, and a comparison of mortgage repayments by customer, property, and region.

The report shows drawdowns for homeowners rose by 23% year on year in H1 2021 to more than 14,000, similar to the level of drawdowns in H1 2019.

First-time buyers accounted for 67.5% of drawdowns in H1 2021, while FTBs buying existing properties accounted for 47.4% of the total.

The median monthly payment for first-time buyers was €841.

Payments varied from region-to-region. Dublin saw a median monthly payment of €1,107, Cork and Galway saw median monthly payments between €800-900 and all other regions were €730.

Dublin acquired 31.3% of home purchase mortgages in the twelve months ending June 2021, while commuter counties Meath, Kildare, and Wicklow each saw 4% of the national market.

Outside Dublin, Cork had the largest single market with 11.7% of mortgages, followed by Galway and Limerick with 4.8% and 3.8% each. 

The report found that self-builds accounted for 37% of FTB mortgages for new properties and almost 47% of mover purchase mortgages for new properties.

In regions outside of Dublin, Cork, Kildare, Meath, and Wicklow, mortgages for self-builds outnumbered mortgages for the purchase of new builds.

Chief Executive of BPFI, Brian Hayes said the detailed report provides important insights into the mortgage market in Ireland and gives a very clear picture of the market across many dimensions, from age and type of house to geographic location.

"The most welcome finding is that we can see a strong and full recovery in the mortgage market in H1 2021 following the extreme difficulties that were experienced last year with drawdown figures back to 2019 levels. However, the impact of Covid-19 restrictions continues to be felt on home loans for new properties, with existing houses accounting for close to 50% of the First Time Buyer Market, who in themselves account for a large majority of the overall mortgage market." added Mr. Hayes.

Mr. Hayes said it was 'encouraging' to see from the latest CSO and Department of Housing figures that there were more than 24,000 housing starts and almost 14,000 completions in the first nine months of this year.

"During that same period our own data shows that BPFI members have been supporting customers with almost 22,000 mortgages approved for FTBs and almost 10,000 for mover purchasers and will continue to support people around the country looking to buy or build their new home." he said. 

The full report can be read here.

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