Latest data reveals that Home Building Finance Ireland (HBFI), under the endorsement of the state, has seen a twofold increase in loan approvals within the initial half of this year, reaching to a sum of €398 million, driven by a constant upswing in demand. This escalation has brought the total approvals to an impressive €2.1 billion, thereby enabling the funding for 11,200 dwellings across 162 projects.
Dara Deering, HBFI’s Chief Executive, highlighted the escalated demand for new homes and the eagerness amongst housing companies of all sizes to cater to this demand, provided they have access to necessary funds. Now in its sixth operational year, HBFI takes pride in making a substantial impact by endorsing funds for more than 11,000 new homes, spread across 23 counties in Ireland.
So far, HBFI has revealed that it has disbursed an approximate sum of €1.32 billion, anticipating a three to six months lag between initiations of approvals and funds withdrawal. The organisation grants loans ranging from €1 million to €108 million for a span of 22 months, with an average value of €13 million.
The latest data further portrays that housing accounted for 66% of all the approvals granted, whereas apartments made up the remaining 34%. Nearly 6,000 homes have either been sold, agreed for selling or are under contract, where 48% of these homes are reserved for owner-occupiers and the remaining 38% are dedicated to social or affordable housing provisions.
HBFI, initiated by the government for the sole objective of funding new homes, commenced its operations in January 2019 with an opening capital of €750 million, sourced from the Ireland Strategic Investment Fund. This was done to ensure the delivery of up to 7,500 new homes over a span of five years.
HBFI has also launched several initiatives, which include the Accelerate product, exclusively designed for large-scale developers to bridge any identified gaps in the market.
In 2023, after an evaluation by the Finance Minister, this product was launched to aid developers who may face difficulties securing more funding. There have already been several deals completed using this product, according to Jack Chambers, Minister of Finance. With its diverse product portfolio and adaptable business structure, HBFI is instrumental in implementing the government’s approach to speed up the provision of new homes and achieve the objectives laid down in the government’s ‘Housing for All’ initiative.