- Funding approved for 11,200 homes in 162 developments in 23 counties (66% houses, 34% apartments)
- 48% of HBFI-funded homes are for owner-occupiers, 38% for social/affordable housing, 4% Part V and 10% for renters
- New approvals in H1 2024 double the same period in 2023 (€398m vs €189m)
- 5,867 HBFI-funded homes are either already sold, contracted for sale or sale agreed
30 July 2024
Home Building Finance Ireland (HBFI), set up by the Government to fund the delivery of new homes, has grown total loan approvals to €2.1bn at the end of June 2024, an increase of 24% on the €1.66bn at the end of 2023.
HBFI’s H1 2024 performance update, published today, shows demand for HBFI funding continues to grow, with total new loan approvals of €398m in the first 6 months of the year, more than double the €189m approved in the same period in 2023.
At the end of June 2024, HBFI had approved funding for 11,200 new homes in 162 developments across 23 counties.
3,764 HBFI-funded units have already been sold, with a further 2,103 contracted for sale or sale agreed as at the end of June 2024.
Of the €2.1bn approved, drawdowns have taken place in respect of facilities totalling €1.32bn (64%), for 96 developments supporting 8,161 homes where construction is in progress or has completed. HBFI typically expects a time lag of between 3 and 6 months between a loan being approved and its first drawdown.
Individual loan facilities range from €1m to €108m, with an average size of €13m. These facilities are for an average term of 22 months.
HBFI Progress Update
Today’s progress update shows that, as at the end of June 2024, HBFI’s key metrics compared to December 2023 and June 2023 were as follows:
| June 2024 | December 2024 | June 2023 | |
|---|---|---|---|
| Approvals | €2.054bn | €1.656bn | €1.437bn |
| No. of units supported | 11,200 | 8,495 | 6,357 |
| No. of developments | 162 | 129 | 117 |
| Average facility size | €13m | €13m | €12m |
| Average development size | 69 units | 66 units | 54 units |
HBFI Chief Executive Dara Deering said:
“We saw a doubling in our loan approvals in H1 2024 versus the same period in 2023.
An increase of this size reflects the really strong and sustained demand for new homes and the significant appetite among small, medium and large housebuilding companies to meet that demand if they can get the finance they need.
We’re now in our sixth year in business and we’re made a significant contribution to accelerating housing supply by approving funding for over 11,000 new homes in 23 counties across Ireland.
We’re offering commercial terms, attractive and tailored loan products, and the specialist lending expertise that our customers need. We’re recycling capital effectively to leverage the impact of the capital at our disposal and we intend to keep doing this to grow the supply of new homes further.”
The Minister for Finance, Jack Chambers TD, said:
‘’Today’s update highlights the strong performance by HBFI over the last six months, with total new loan approvals of €398m in H1 2024, double the €189m approved in H1 2023.
HBFI has now approved funding for 11,200 new homes in 162 developments in 23 counties.
I welcome the launch of HBFI’s new product, Accelerate. Following a review by the Minister of Finance in 2023, this product was introduced for developers who may be constrained in raising additional finance. HBFI has already concluded a number of transactions using this product.
Through its broad product range, and agile business model, HBFI plays a key role in the Government’s strategy to accelerate the supply of new housing and meet the targets set out under the Government’s Housing for All plan. I wish to thank HBFI and its staff for their continued work, particularly over the last six months.”
Measures announced by HBFI to support improved housing supply
Since its establishment HBFI has announced a number of initiatives to support small, medium and large housebuilders:
- In the early weeks of the Covid-19 pandemic, HBFI launched a new €200m (subsequently extended to €300m) Momentum Fund for large developments in prime locations. This fund is now closed for new applications.
- In 2020, extending HBFI’s existing offering to include more large-scale housebuilding firms, by doubling the upper limit for individual HBFI loans from €35m to €75m with an ability to increase further, for qualifying schemes under HBFI’s normal assessment criteria.
- In 2020, extending HBFI’s existing offering to include smaller housebuilding SMEs, reducing the previous minimum size requirement of 10 units to 5 units.
- A product specifically aimed at social housing with reduced fees, acknowledging the reduced risk once the units are completed.
- In 2021 a new Green Loan product was launched offering discounted loan rates for qualifying developments that promote sustainable housing delivery.
- In 2023, HBFI, in response to a recommendation in the Minister for Finance’s review of the organisation, launched a new product, Accelerate, for larger developers who may be constrained in raising additional finance, and has already concluded its first transaction using this product.
- HBFI has continued to engage extensively with the market during H1 2024, running 3 regional events for builders in Dundalk, Galway and Limerick, hosting a larger event in Dublin and participating in over 15 other events across Ireland. Further events are planned for Autumn 2024.
About HBFI
- Established under the Home Building Finance Ireland Act 2018.
- Commenced operations on 28th January 2019.
- Initial funding capacity of €730 million made available by the Ireland Strategic Investment Fund (ISIF), which is recycled as early loans are repaid, freeing up capacity for new lending
- A private company with its own Board operating on a commercial basis, wholly owned by the Minister for Finance.
- HBFI is subject to State Aid rules and audited by the Comptroller & Auditor General.
Counties in which HBFI is funding new homes
| Carlow | Dublin | Laois | Monaghan | Westmeath |
| Cavan | Galway | Limerick | Offaly | Wexford |
| Clare | Kerry | Louth | Sligo | Wicklow |
| Cork | Kildare | Mayo | Tipperary | |
Donegal | Kilkenny | Meath | Waterford |
Composition of HBFI-funded homes
| Total | Owner-occupiers | Private Rental | Social Housing / Affordable | Part V | |
|---|---|---|---|---|---|
| Houses | 7,428 | 5,158 | 50 | 1,933 | 287 |
Apartments | 3,772 | 182 | 1,110 | 2,300 | 180 |
| Total | 11,200 | 5,340 | 1,160 | 4,233 | 467 |
| 47.7% | 10.3% | 37.8% | 4.2% | ||
| Houses | 66% | ||||
| Apartments | 34% |
HBFI CEO Dara Deering provides an update on Home Building Finance Ireland's progress to date.