Mortgage approvals rose to a record in May, with first-time buyers continuing to drive activity, data from Banking and Payments Federation Ireland (BPFI) showed.
Latest figures showed a rise of 13 per cent year on year in the number of approvals, with activity growing more than 20 per cent compared to April’s figures.
The value of mortgages approved during May totalled close to €1.9 billion, a year-on-year increase of almost 17 per cent and the highest monthly values since the data series began in 2011.
Almost 5,700 mortgages got the green light during the month – the second highest on record – with 59 per cent, or 3,361 mortgages, for first-time buyers at a total of €1.1 billion.
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Mover purchasers accounted for 18 per cent, or 1,044 mortgages, with a value of €426 million. Re-mortgage or switching activity rose by more than a third in volume terms year on year, and climbed 45 per cent in value.
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Residential investment letting approvals, meanwhile, rose by more than a quarter to 72, and the number of top-up approvals was almost 23 per cent higher year on year, reaching 43.
“First-time buyer activity remains the key driver of the market, reaching its highest levels since the data series began,” said Brian Hayes, chief executive of BPFI.
“While mover purchase lending also grew, it accounted for only 18.3 per cent of mortgage approval volumes, a historically low share of activity for the month of May.
“Meanwhile, switching activity reached the second-highest activity level since December 2022.”
Looking at annualised figures, more than 53,770 mortgages were recorded in the 12 months to May, with the BPFI describing it as a “moderate increase” on the year to April’s figures.
“Overall, the figures point to a robust pipeline for mortgage lending in the months ahead, underpinned by continued demand from first-time buyers and increased activity across switching and top-up lending,” Hayes said.
“However, the continued low share of mover purchase activity points to ongoing constraints on mobility within the housing market.”
The pressure on Ireland’s property market has continued, although rising interest rates are expected to put the brakes on some buyers.
The rate of house price inflation has also slowed a little, according to the Central Statistics Office. Its latest figures show house prices in Ireland increased by 6.2 per cent in the year to April, slowing by 0.3 per cent compared with March and 0.5 per cent in the year to February.
Other reports showed the slowdown was mostly concentrated in cities, particularly in Dublin.
Recent data from the Department of Housing showed the rate of new housing commencements has fallen to below the 10-year average, reaching levels last recorded six years ago. Construction started on 2,099 units in May, but only 24,499 units were commenced between June 2025 and last month, the fourth-lowest level in a decade.
That decline followed a spike in commencement levels in 2023 and 2024 as incentives introduced by the Government took hold.
