- Funding approved for 5,717 homes in 99 developments in 21 counties (68% houses, 32% apartments)
- 50% of HBFI-funded homes are for owner-occupiers, 25% for social/affordable housing, 5% Part V and 20% for renters
- 1,245 HBFI-funded homes already sold, with a further 1,819 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 €1.248bn at the end of 2022, an increase of 49% on the €835m at the end of 2021.
In its year end performance update published today, HBFI said that at the end of 2022 it had approved funding for 5,717 new homes in 99 developments in 21 counties. Social housing accounts for 25% of the new homes approved for funding.
1,245 HBFI-funded units have already been sold, with a further 1,819 contracted for sale or sale agreed as at the end of 2022.
Of the €1.248bn approved, drawdowns have taken place in respect of facilities totalling €909m (73%), for 60 developments totalling 4,132 units 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.
The majority of homes funded by HBFI consist of 3 bed (41%) and 2 bed (29%) units aimed at the first-time buyer market.
Individual loan facilities range from €1m to €94m, with an average size of €13m. Terms of these facilities range from 6 months to 48 months, with an average of 22 months.
HBFI Progress Update
Today’s progress update shows that, at end December 2022, HBFI’s key metrics compared to June 2022 and December 2021 were as follows:
| December 2022 | June 2022 | December 2021 | |
|---|---|---|---|
| Approvals | €1.248bn | €1.16bn | €835m |
| No. of units supported | 5,717 | 5,210 | 3,729 |
No. of developments | 99 | 86 | 71 |
| Average facility size | €13m | €13m | €12m |
| Average development size | 58 units | 61 units | 52 units |
HBFI Chief Executive Dara Deering said:
“We’re continuing to make a difference for owner-occupiers, renters and people who need social housing by adding much-needed new supply to all of these sectors.
We’re lending to large and small housebuilding firms, extending our reach to improve supply as much as we can.
The first half of 2022 was our busiest-ever six-month period in terms of loan approvals and, while we saw a lower level of applications and new approvals in the second half reflecting a slowdown in construction activity across the market, feedback from housebuilders indicates that demand for new funding is resilient despite the challenges of construction price inflation and higher interest rates.”
The Minister for Finance, Michael McGrath TD, said:
“HBFI was established as an important Government initiative to address a shortfall of finance available for the construction of residential housing in the State. Through its broad product range, and agile business model, HBFI plays a key role in the Government’s strategy to meet the targets set out under Housing for All.
Today’s update highlights the strong performance by HBFI over the last six months, with funding approved since inception for 5,717 new homes in 99 developments in 21 counties.
With viability remaining challenging for the construction sector, I welcome HBFI’s commitment to work with customers and stakeholders to support a continued increase in housing supply in the market.
I am confident HBFI will continue to work to monitor the risks and opportunities for future funding. I wish to thank HBFI and its staff for their continued work, particularly over the last six months.”
Counties in which HBFI is funding new homes
| Carlow | Dublin | Kilkenny | Mayo | Tipperary | Wicklow |
Clare | Galway | Laois | Meath | Waterford | |
| Cork | Kerry | Limerick | Monaghan | Westmeath | |
| Donegal | Kildare | Louth | Offaly | Wexford |
Measures announced by HBFI to improve housing supply
Since its establishment HBFI has announced a number of initiatives to extend its support for 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 fully allocated and 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
- In 2020, backing major apartment developments for the first time
- A product specifically aimed at social housing with reduced fees, acknowledging the reduced ‘take out’ risk once the units are completed
- A new Green Loan product offering discounted loan rates for qualifying developments that promote sustainable housing delivery.
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