Home Building Finance Ireland, the state lender for small and medium-sized house builders, approved loans of €325m during the first six months of the year.

HBFI has now approved total loans of €1.16bn following what it described as its busiest six-month period to date.

The organisation said the funding is financing construction of 5,210 new homes in 86 developments in 20 counties, with one quarter of approved funding going to social housing projects.

Some 715 HBFI-funded units have been completed and sold, with a further 1,780 contracted for sale or sale agreed.

Of the €1.16bn approved, c.€740m has been drawn down for 50 developments totalling 3,230 units where construction is in progress or has been completed. HBFI typically expects a time lag of three to six months between approval and drawdown.

In Association with

Units funded by HBFI range from one-bed apartments (13%) to 5-bed houses (2%), with the majority consisting of 3- bed (38%) and 2-bed (30%) 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.

"This was our busiest-ever six-month period in terms of loan approvals," said Dara Deering, CEO of HBFI. 

"We remain vigilant to risks such as construction price inflation, but we will work closely with the housebuilding firms we lend to in helping them address these challenges and continue adding to the supply of new homes." 

Finance minister Paschal Donohoe commented: "Increasing the supply of housing remains a priority for government. 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 the Housing for All plan." 
 
Photo: Dara Deering. (Pic: Fennell Photography)