High and rising house prices are driving home buyers out of Dublin, according to an analysis by ICS Mortgages covering the last year and a quarter.

The trend has been accelerated by what ICS calls the ‘seismic impact’ of Covid-19, plus government support for remote working, including a commitment for home and remote working to be the norm for 20% of public sector employees.

ICS Mortgages data show that in Q1 2020 almost half of its mortgage drawdowns (46%) were for properties in Dublin. A year later in Q1 2021, this figure is down to one in three.

ICS also reports significantly increased volumes of mortgage drawdowns across the rest of the country, with rest of Leinster overtaking Dublin to become the most popular location (34%) for drawdowns in the first quarter of 2021.

The analysis also shows substantial increases in drawdown activity in Connacht and Ulster, albeit from a lower base. In Munster, drawdowns are up 15% from Q4 2020 to Q1 2021.

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The lender predicts that the reality of employer-supported remote working has created a new dynamic in home purchasing.

As part of its response, it is offering a special public sector mortgage which takes career earnings into account by assessing income two points up from the applicant’s current pay scale.

It’s also conducting a webinar on public sector mortgages next week to answer any questions first-time buyers and movers and switchers in the public service may have.

Chief commercial officer Ray McMahon (pictured) said: “Our owner-occupier mortgage drawdowns are up significantly year-on-year right across the country, but what is most noticeable is the shift in the location of properties on which mortgages have been drawn down.

“Fundamentally, 12 months into the great remote working experiment, there is now an acceptance that having to show up to the office in the centre of Dublin, Cork, Galway or Limerick at 9am every single working day is not what the future of work looks like.

“A hybrid model – sometimes working in the office/sometimes working at home – seems the most likely option for most businesses and workers. Because of this, many people are now looking further afield from the office than they would previously for homes."

The ICS webinar takes place on Wednesday 12 May from 6.30pm to 7.30 and free registration is here.