- Funding approved for 6,357 homes in 117 developments in 22 counties (66% houses, 34% apartments) to date
- 47% of HBFI-funded homes are for owner-occupiers, 30% for social/affordable housing, 5% Part V and 18% for renters
- 3,666 HBFI-funded homes are either already sold, contracted for sale or sale agreed
Home Building Finance Ireland (HBFI), set up by the Government to fund the delivery of new homes, has grown total loan approvals to €1.44bn at the end of June 2023, an increase of 15% on the €1.25bn at the end of 2022.
HBFI published its latest half-yearly performance update at a HBFI market engagement event for housebuilding firms in Douglas, Cork today, at which the Minister for Finance, Michael McGrath TD, was the keynote speaker.
The update shows that demand for HBFI funding rebounded significantly in the first half of this year, with new lending volumes for the period doubling compared to second half of 2022, a period when the market showed signs of slowing down.
At the end of June 2023, HBFI had approved funding for 6,357 new homes in 117 developments in 22 counties. Social or affordable housing accounts for 30% of the new homes approved for funding.
1,978 HBFI-funded units have already been sold, with a further 1,688 contracted for sale or sale agreed as at the end of June 2023.
Of the €1.44bn approved, drawdowns have taken place in respect of facilities totalling €979m (68%), for 66 developments supporting 4,258 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 €12m. Terms of these facilities range from 6 months to 48 months, with an average of 22 months.
HBFI is also announcing today that it will introduce a new lending product next month to address an emerging gap in the funding market. The product, which was recommended as part of the Minister for Finance’s recent review of HBFI’s operations, will be available to larger homebuilding firms that may encounter issues accessing funding in order to accelerate their delivery. Further details of this product will be announced closer to launch.
HBFI Progress Update
Today’s progress update shows that, at end June 2023, HBFI’s key metrics compared to December and June 2022 were as follows:
| June 2023 | December 2022 | June 2022 | |
| Approvals | €1.437bn | €1.248bn | €1.16bn |
| No. of units supported | 6,357 | 5,717 | 5,210 |
| No. of developments | 117 | 99 | 86 |
| Average facility size | €12m | €13m | €13m |
| Average development size | 54 units | 58 units | 61 units |
HBFI Chief Executive Dara Deering said:
“We are making strong progress in supporting increased housing supply for owner-occupiers, renters and people who need social or affordable housing.
Against a challenging backdrop of higher interest rates and inflation in construction materials and labour, our support for housebuilding firms gives them access to competitive funding options that allow them to plan with certainty and to build the homes that so many people need. This support is reflected in the strong demand we have seen for our funding in the first half of this year.
We will continue to work closely with stakeholders across the sector to ensure we can help them with the challenges they face and accelerate the delivery of new homes
Minister for Finance, Michael McGrath TD commented:
“Today’s update highlights the important role HBFI continues to play in the funding landscape for the delivery of new homes with approved funding of €1.44 billion to end-June 2023, supporting the development of 6,357 homes across 22 counties.
I am pleased to see HBFI taking a forward looking approach in adjusting their product offerings to address emerging market needs and I commend them on their swift response.
The Government remains committed to driving the development of new homes across the country and to supporting homebuilders in accessing finance.”
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: and with the introduction of its new product will further extend that range:
- 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.
- A new Green Loan product offering discounted loan rates for qualifying developments that promote sustainable housing delivery.
- A new product designed to help larger homebuilding firms accelerate delivery if they experience difficulty in accessing funding.
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 | Donegal | Kildare | Louth | Offaly | Wexford |
| Cavan | Dublin | Kilkenny | Mayo | Tipperary | Wicklow |
| Clare | Galway | Laois | Meath | Waterford | |
| Cork | Kerry | Limerick | Monaghan | Westmeath |
Composition of HBFI-funded homes
| Total | Owner-occupiers | Private Rental | Social/Affordable Housing | Part V | |
| Houses | 4,203 | 2,913 | 50 | 1,035 | 204 |
| Apartments | 2,154 | 93 | 1,110 | 850 | 101 |
| Total | 6,357 | 3,006 | 1,160 | 1,886 | 305 |
| 47.3% | 18.2% | 29.7% | 4.8% | ||
| % Houses | 66% | ||||
% Apartments | 34% |
HBFI Mid-Year Update June 2023