Developer loan approvals by State-backed HBFI pass €2bn threshold
Almost €400m in new lending for the construction of new homes was approved by the State’s building finance body in the first half of 2024.
That will go towards the construction of just over 2,700 housing units, according to Home Building Finance Ireland.
It brings to €2.05 billion the amount approved by the HBFI since it began lending in early 2019, covering 11,200 units.
HBFI was established to provide funding to small and medium-sized property developers, with an initial fund of €750m coming from the Ireland Strategic Investment Fund.
It was originally tasked with funding the delivery of 7,500 homes over five years.
However last year the Minister for Finance Michael McGrath extended its lifespan, saying there was a “clear consensus” in the industry that HBFI was playing a “key role in providing access to debt financing for residential development which would otherwise not be available on the market.”
HBFI funding has been approved for developments in 23 counties, it said.
Two thirds of the units offered HBFI funding were houses, with one third being made up of apartments.
Nearly half of the units were being built for owner-occupiers, while nearly 38% were social or affordable homes.
Just over 10% of the properties were being build for the rental market.
According to HBFI, of the €2.05 billion in lending that had been approved by the end of June 2024, €1.32 billion had been drawn down.
This was spread across 96 developments, where 8,161 homes were either under construction or completed.
The body said that, to date, 3,764 HBFI-funded homes had already been sold, with a further 2,103 either contracted for sale or sale agreed.
Article Source – Developer loan approvals by State-backed HBFI pass €2bn threshold – RTE
