THE VALUE OF mortgage drawdowns so far in 2025 have hit levels not seen in the first half of a year since the months leading up to the financial crash.

The Banking and Payments Federation Ireland (BPFI) has published its latest mortgages figures, painting a picture of the rising cost of buying a home in Ireland today.

Almost €6.2 billion worth of mortgage drawdowns were made in the first half of 2025, an increase of 18.7% on the same period last year and the highest values for the first six months of a year since 2008. 

During the first half of 2025, the average mortgage value hit a record high of €329,444. 

Mortgages for first-time buyers have also shot up. As of the end of June, a total of 11,803 first-time mortgage drawdowns have been recorded this year, amounting to more than €3.7 billion – the highest volume and value since 2007 and 2006 respectively. 

“While all customer segments in the first half of 2025 grew year-on-year, first-time buyers continue to dominate,” said BPFI chief executive Brian Hayes 

The value of switcher mortgages hit €732 million, the third-highest for the first six month of the year since 2008.

Switcher mortgages in the first half of the year were up 41.9% in volume and 60% in value compared to the same period in 2024.

“This signals a normalisation of switching trends, following a sharp peak in activity in 2022 and subsequent slowdown,” Hayes said.

New properties, including self-builds, accounted for 34.5% of home purchase mortgage drawdowns in H1 2025, up from 31.7% in H1 2024. It’s the highest share of total home types taken up by new properties since 2010.

The number of mortgages on second-hand properties increased marginally to 10,312.

The number and value of mortgage drawdowns in Q2 2024, Q1 2025 and Q2 2025 Banking and Payments Federation Ireland Banking and Payments Federation Ireland

The rising figures are in line with stories from home buyers about having to fork out large sums for a house or apartment as the housing crisis persists.

Asking prices climbed an average of 7% year-on-year in recent months, with Donegal – the county with the highest increase – seeing a jump of 19%.

Galway and Leitrim have both seen a 13% rise in asking prices, reaching an average of €350,000 and €198,000 respectively.

In many cases, properties ultimately sell for well above asking prices as prospective buyers out-bid each other to secure coveted homes.

Brian Hayes said that there had been a significant increase in Help to Buy applications for first time buyers. 

“First-time buyer mortgage approval volumes rose by 5.4% to 15,736 in the first half of 2025, the highest such level since the data series began in 2011, while mover purchase approval volumes fell for the fourth year in a row to 4,990.

Related Reads

New tenancy rules will have 'chilling effect on housing supply', IPOA to tell Housing Committee

Taoiseach: 'Some councils took their eye off the ball, they need to go back to housing'

“First time buyer housing demand remains very strong, with 22,903 Help to Buy applications in the first half of 2025, according to the Revenue Commissioner, almost 41% more than in the first half of 2024.”

The new National Development Plan published this week stated that the government intends to invest €35.955 billion in housing development from 2026 to 2030, broken down into €28.275 billion for housing itself and €7.680 billion for water infrastructure.

However, critics of the plan have said it was scant on detail and held back from committing to concrete investment measures to alleviate the housing crisis.

Green Party housing spokesperson Councillor Oliver Moran said the NDP was a “missed opportunity” for the government to help local authorities make more housing available.

“Local authorities up and down the country are ready to do their part on improving our existing buildings,” Moran said.

“This National Development Plan was a missed opportunity to commit serious resources to local authorities to retrofit more council housing, tackle vacancy through compulsory purchases and activate the derelict sites that blight our streets.”

Social Democrats housing spokesperson TD Rory Hearne said that the NDP “gives no indication that the government is planning to move away from the measures that have plagued housing provision in the last decade, the failed policies which pander to developers and investment funds”.

“No amount of money can solve the housing crisis if the government refuses to change its approach to providing social and affordable homes – [the NDP] gives me no reason to believe that it intends to do otherwise,” Hearne said.