The value of mortgage lending rose by 72 per cent on an annual basis in the first quarter of the year, as some 3,425 mortgages were drawn down at a total value of € 568 million.
Activity levels rose by 66 per cent, according to the IBF/PwC Mortgage Market Profile, the highest increase since 2010, and the first time year-on-year growth has been reported in the first quarter of the year since 2006.
However, when compared with the fourth quarter of 2013, the figures fell significantly, with the value of loans down by 37 per cent in Q1 - traditionally the quietest time of the year - and the volume of loans down by 34 per cent.
"Today's figures provide further encouraging evidence that the market continues to recover," Noel Brett, IBF chief executive said, but added, "That said, we remain concerned that housing supply constraints in key locations are becoming a serious impediment to sustained growth; and this is reflected in the widening gap we see developing between the level of mortgage approvals and actual drawdowns".
According to the statistics, over 90 per cent of new mortgage credit is now going to home purchasers, with first time buyers and mover purchasers continuing to dominate the market, accounting for almost 85.9 per cent of new mortgages issued. In effect, over 90 per cent (91.2%) of all mortgage credit now goes to the home purchasing segments of the market.
The average size of a FTB loan fell back to €151,123 from €157,035 in the last quarter of 2013.
