Being a first-time homebuyer in Ireland has never been an easy feat, but recent data suggests there may be some silver linings for those stepping onto the property ladder. With nearly 5,000 mortgages approved in October alone, and first-time buyers making up over 60% of these approvals, the mortgage landscape is showing promising signs of activity driven by lower interest rates and government-backed affordability schemes.
If you’re a first-time buyer, this is your moment. Here’s what you need to know about the recent shifts in the mortgage market and how you can make the most of these developments.
Encouraging Market Trends for First-Time Buyers
Interest Rate Cuts Bring Renewed Activity
The European Central Bank’s recent interest rate reductions have sparked a wave of activity in the mortgage market. These lower rates are making mortgages more affordable for first-time buyers, allowing many to secure financing with more favourable terms.
October saw the average first-time buyer approval amount rise to €311,975, a 13% increase year-on-year. Coupled with predictions of future rate reductions, this economic shift has created a somewhat brighter horizon for new buyers.
Record Levels of First-Time Buyer Activity
According to the Banking and Payments Federation Ireland (BPFI), the volume and value of first-time buyer mortgage approvals reached an all-time high in October. For those on the fence, this highlights that now could be an opportune time to act—before prices or rates change course again.
The Role of Government Support in Reducing Barriers
Ireland has been proactive in helping reduce the financial strain on first-time buyers. Two prominent initiatives, the Help to Buy scheme and the First Home scheme, are making significant impacts on affordability.
- Help to Buy Scheme: This offers first-time buyers a tax rebate to help fund their deposit, providing crucial financial support in an overheated market.
- First Home Scheme: Through this shared equity programme, the state provides part of the purchase cost, reducing the financial burden and making homeownership more achievable.
These schemes are playing a pivotal role in enabling young buyers to confidently approach the housing market and secure their dream homes.
Challenges Persist – A Competitive Housing Market
However, it’s not all smooth sailing. There’s still one significant hurdle—supply. Many would-be buyers are frustrated by the lack of available housing, with demand consistently outpacing supply. For instance, second-hand housing stock remains low, sitting at just two-thirds of pre-pandemic availability.
This imbalance has increased competition, meaning first-time buyers need to be prepared to act quickly and decisively when the right property comes onto the market.
Tips for First-Time Buyers in the Current Climate
Here’s how to make your property-buying experience smoother and more successful in today’s evolving mortgage landscape:
- Get Pre-Approved
Securing a mortgage pre-approval is a must. It not only gives you clarity on your budget but also signals to sellers that you’re a serious buyer.
- Understand Total Costs
Beyond the deposit, prepare for additional costs such as stamp duty, solicitors’ fees, and house surveys. Factoring these in ensures you’re financially ready to proceed.
- Work with Experts
Professionals, like mortgage advisors or solicitors, can guide you through the complexities of the process. They bring invaluable expertise, particularly in competitive situations.
- Stay Updated on Support Schemes
Leverage all available government incentives, such as the Help to Buy and First Home schemes, to maximise your financial advantage.
- Be Quick but Strategic
With properties in high demand, having your finances and documentation ready can give you a competitive edge.
- Think Long-Term
Look at properties that meet both your immediate needs and your long-term goals—it’s not just about getting onto the property ladder but staying on it sustainably.
Looking Ahead
With lower interest rates and increased support for first-time buyers, 2024 is shaping up to be a promising year for those looking to make their first purchase. However, challenges such as limited supply underline the importance of being informed, prepared, and proactive in your approach.
If you’re ready to take the first step on your homeownership journey, don’t do it alone. At HOMS Assist, we provide expert advice specifically tailored to first-time buyers. From securing pre-approval to navigating legal complexities, we’re here to guide you every step of the way.
