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Irish Post
2 days ago
- Automotive
- Irish Post
Personal loans in Ireland hit record high especially for car payments
PEOPLE taking out personal loans in Ireland hit record highs in the first quarter of 2025. Personal loans were up across all fields, particularly in car financing, according to new figures from the Banking & Payments Federation Ireland (BPFI). The newest BPFI Personal Loans Report reveals that the number of car loans increased by 20% year-on-year to 19,552, while the total value of such loans surged by 25% to €259 million. This is the highest level of car loans since the BPFI began collecting this data in 2020. The average car loan rose by €366 over the year, reaching €13,267. BPFI's Head of Sector Research & Analysis, Anthony O'Brien, attributed the continued growth in car loans to rising demand for electric and plug-in hybrid vehicles, along with ongoing financing for second-hand cars. In total, over 60,000 personal loans were taken out in the first quarter of the year , valued at nearly €700 million. This represents an annual increase of 22% in volume and 24% in value. The average personal loan increased by €177 compared to the same period last year, now standing at €11,239. The report also shows major growth in green loans, which rose 26% in volume to 1,531 loans. Their total value climbed 29.3% to €35.1 million. The average green loan reached €22,906, which was more than double the average across all personal loan types. Home improvement loans also saw a sharp increase, with 15,372 loans drawn down in the first quarter, an 18% increase from last year. These loans were valued at €198 million, 19% higher than the same period in 2024. The average home improvement loan increased by €116 to €12,886. O'Brien said that these numbers show a big start to the year for consumer borrowing, with Q1 setting new records for personal loan drawdowns both in terms of volume and value. Separately, in Britain, a Supreme Court ruling brought relief to lenders facing possible payouts related to motor finance commissions. The court overturned a previous decision that could have forced banks to compensate borrowers for undisclosed commissions paid to car dealerships. While the judgement reduces the potential financial burden on lenders, the Financial Conduct Authority (FCA) is moving forward with a redress scheme covering deals dating back to 2007. Bank of Ireland, which holds around 2% of the British motor finance market, had already allocated £143 million for possible compensation. Following the ruling, the bank said it would fully review the judgement but made no further comment. See More: BPFI, FCA, Loans
The Journal
2 days ago
- Automotive
- The Journal
Irish people borrowed more money for car loans at the start of 2025 than in at least five years
CAR LOANS IN Ireland hit a new peak in the first three months of this year, new figures show, reaching their highest level since specific record-keeping and analysis of the data began five years ago. The Banking and Payments Federation Ireland (BPFI) has released data showing that from January to March, 19,552 car loans were taken out, collectively valued at a total of €259m. The average car or auto finance loan was €13,267, an increase of €366 compared with last year. Personal loan activity also grew across other types of loans, including green and home improvement loans and loans for education, holidays or special occasions. Overall, a total of 60,770 personal loans were drawn down in the first quarter of the year, valued at €683m. It marks a year-on-year in increase of 22.1% in volume and 24.1% in value. BPFI's Personal Loans Report Q1 2025 published today shows car loan volumes and values reached their highest levels on record, with 19,552 loans valued at €259 million. Read the report on — Banking & Payments Federation Ireland (@BPFINews) August 15, 2025 The average personal loan value rose by €177 to €11,239 compared with the same period last year. The number of car loans rose by 21.5% to 19,552, while the value of these loans increased by 25% year on year to €259m. Advertisement There were 15,372 home improvement loans, an increase of 18.2%, and they were valued at €198m, a 19.2% jump. The average home improvement loan increased by €116 to €12,886. The category of 'other loans' includes loans for reasons like education, holidays and special occasions such as weddings. A total of 25,846 'other loans' were drawn down valued at €226m, up 25% in volume and 27.5% year-on-year. The average loan value for other loans increased by €170 to €8,725. BPFI Head of Sector Research & Analysis Anthony O'Brien said that the latest figures 'reveal continued strong demand for personal loans'. 'When viewed on an annualised basis, we see there were 240,423 personal loans drawn down in the four quarters ending Q1 2025, valued at almost €2.6bn. This was more than double the value in the twelve months ending Q1 2021,' he said. O'Brien said the report shows the highest car loan volumes and values since the data series began in 2020. 'The continued growth in electric and plug-in hybrid electric vehicles is likely contributing to these increases,' he said. 'While increases were seen across all categories, green personal loans, which comprise of green car and green home improvement loans, had the highest relative jump in value of 29.3% year on year to €35.1m in Q1 2025 and in volume by 26.6% to 1,531. 'These are the highest activity levels since the green loan data series began in 2022.' Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
RTÉ News
2 days ago
- Business
- RTÉ News
Car loan values surge 25% to highest level on record in Q1
New figures out today show that car loan volumes and values reached their highest levels on record in the first quarter of this year. The latest Banking & Payments Federation Ireland (BPFI) Personal Loans Report shows that the number of car loans rose by 21.5% year on year to 19,552, while the value of these loans increased by 25% to €259m. The average car or auto finance loan increased by €366 to €13,267, BPFI added. Today's report also shows that personal loan activity grew across all categories including green and home improvement loans as well as loans for education, holidays and special occasions. A total of 60,770 personal loans were drawn down, valued at €683m, in the first quarter of this year - an increase of 22.1% in volume and 24.1% in value year on year. The average personal loan value rose by €177 year on year to €11,239. BPFI said the number of green loans rose by 26.6% year on year to 1,531 while the value of green personal loans jumped by 29.3% over the same period to €35.1m. It noted that the average green loan rose by €474 at €22,906 in the first three months of this year, more than twice the value of the average for all loans of €11,239. Today's report also reveals 15,372 home improvement loans were given out in the first quarter of the year, up 18.2% on an annual basis. These were valued at €198m 19.2% higher than the previous year. The average home improvement loan increased by €116 to €12,886. Meanwhile, a total of 25,846 loans for other purposes - including education, holidays and special occasions such as weddings - were drawn down, a rise of 25% in volume year on year, with values rising by 27.5% to €226m over the same period. The average loan value for other loans increased by €170 to €8,725. "Our latest figures reveal continued strong demand for personal loans, with Q1 2025 marking a new high for overall drawdown volumes and values," Anthony O'Brien, Head of Sector Research & Analysis at BPFI said. Noting that car loan volumes and values reached their highest level since the BPFI data series began in 2020, Mr O'Brien said the continued growth in electric and plug-in hybrid electric vehicles is likely contributing to these increases. He also said it is worth noting that personal loans are also used to finance second-hand car purchases.
Irish Examiner
07-07-2025
- Business
- Irish Examiner
Trump tariffs: 'No sign of shock to Irish property market'
A much-feared economic shock to Ireland's property market by Donald Trump's tariff policies has failed to materialise. Earlier this year, MyHome had warned the speed at which house prices are increasing could be slowed by the prospect of a tariff war between the US and the EU. MyHome warned the economic fallout from such a 'war' could seriously dampen house sales because Ireland's housing market has become too heavily dependent on 'high-income earners working in multinational sectors'. However, MyHome's latest e report states there is 'no sign of any Donald Trump hangover in Ireland's housing market'. 'Clearly uncertainty following [US] president Trump's 'Liberation day' tariffs hasn't been sufficient to dent Ireland's housing market. There is little sign of uncertainty relating to president Donald Trump's tariff policies holding back demand from prospective homebuyers. It instead points out that vendors felt sufficiently confident in April, May, and June to raise their prices regardless of the expected tariff war by a further 4%, or by €20,000 on the quarter. It said typical transactions are being settled 7.5% above the asking price. One in six properties are being sold by 20% or more over. 'Competition for homes remains fierce,' the report states. It found that the average approval in April was €337,700, up 7.8% on the year, reflecting the current pace of average pay growth at 5%-6%. The report states: We now know the average first-time-buyer borrowed 3.4 times their income in 2024, up from a 3.2x multiple in 2022. MyHome managing director Joanne Geary. The firm's latest report states that the average first-time-buyer borrowed 3.4 times their income in 2024, up from a 3.2x multiple in 2022. Picture: Tom Honan 'This change has pushed up house prices by €15,000-€20,000.' MyHome managing director Joanne Geary said: 'When MyHome released our property report for Q1 last April, there was considerable concern about the effect of a potential trade war on the property market. 'Now, after months of speculation, threats, and uncertainty, we can see that the potential of punitive tariffs has had a limited impact on the housing market, with strong demand still in evidence.' She said annual asking price inflation around the country is now running at 7%, compared with 8% at the end of the first quarter. Dublin has seen an increase of 5.1% in asking prices over the year while, outside the capital, asking prices have risen by 7.9%. The median price in Cork was €325,000 in the second quarter of the year, with inflation at 10.2% and Cork City prices up even more sharply by 11.7% to €335,000. 'Average mortgage approval values and volumes have soared to record highs,' she said. The most recent Banking & Payments Federation Ireland data for May shows total mortgage approval values are up by a staggering 17.8% over the year, while the number of approvals has risen by 10.5%. 'Competition for homes is still intense, with an average time to sale agreed of just 2.6 months and the average home selling for 7.5% over the asking price.' She added: 'As has been the case for some time, we have yet to see a significant uptick in supply. 'At end-June 2025 there were 12,563 properties listed for sale on MyHome, up by just 1% compared with the same period of 2024. 'This stagnant level of growth is unhelpful and will give no solace to a Government in desperate need of home completions.' She said that while there will be "some improvement" in the number of completed houses in 2025, the numbers will "fall well short" of the 50-60,000 units required in 2025.
The Journal
26-06-2025
- Business
- The Journal
Ireland needs 80,000 new workers to reach housing and infrastructure targets, ESRI says
IRELAND NEEDS AROUND 40,000 more people employed in the construction sector if the government wants to reach targets of 50,000 new homes a year, according to an economic forecast from the ESRI. Additionally, if the government intends to fulfil promises made in its National Development Plan (NDP), which includes building the infrastructure needed for new housing developments, another 40,000 workers would be needed. The ESRI's latest Quarterly Economic Commentary reiterates previous concerns about capacity constraints in infrastructure delivery, adding that a hoped-for transfer of from non-residential construction to home building has not happened. As cost of buying and renting homes continues to rise , so too does the demand for housing. Meanwhile, many public infrastructure projects that would serve new homes have been beset by delays. Infrastructure shortcomings are creating a bottleneck in the delivery of new residential buildings because the services required are simply not yet in place in many cases. At the same time, Ireland has nearly full employment, so finding 80,000 workers to address the seemingly perpetual housing crisis looks like a daunting task, if not an impossible one, the ESRI suggests. 'We raise this issue of labour constraint on housing provision in part as a reminder of just how challenging it will be to reach a target of 50,000 housing completions or more in the current context of full employment, ' the report states. Last year, the government missed its housing target by roughly 10,000 units, with 30,330 new homes built. On top of that, housing completion targets over the next two years will be missed by around 9,000, according to the Banking & Payments Federation Ireland. Advertisement 'We're seeking to achieve that increase in housing output, while at the same time trying to deliver on an enormously ambitious National Development Plan. And again, all of these things are very laudable,' outgoing ESRI director Alan Barrett told reporters in a briefing on the economic forecast. However, the issue with trying to reach that 50,000 goal, and the completion of the NDP, is workforce capacity. While the government tends to set annual housing targets, the NDP covers infrastructure investment over a ten-year period up until 2030. 'If you were to get housing up from about 30,000 up to about 50,000 about 20,000 increase, you could require about 40,000 additional construction employees. 'It is simply, for us, inconceivable, or at least extremely difficult to conceive how such increases in labour can actually be attained over the short run and even the medium run,' Barrett said. Barrett explained that the situation has led the ESRI to be 'cautious' about the overall capacity of the economy to deliver the required infrastructural expansion. The ESRI's Conor O'Toole said that 'capacity issues in infrastructure and housing are likely to constrain long-term growth and need continued emphasis in terms of public expenditure'. All this means that the government needs to carefully prioritise the NDP projects in order to keep up with demand for services that come with new housing development. 'For many, many years in Ireland, the constraint on development was a budget constraint,' said Barrett. 'But I think you can now say, in a full employment context, the constraint is actually a labour constraint, whereby ministers still have to make difficult decisions, even if the cash is very, very plentiful,' he said. Related Reads Tax breaks for developers? Harris 'remains to be convinced' it's the best tool to boost supply Plans to tie rents for new build apartments to inflation rate being brought to Cabinet Dereliction in Ireland: 'Something is rotten in the Irish property industry' Asked where he sees an additional 80,000 workers coming from, Barrett said: 'The answer is, I can't.' Barrett and O'Toole did offer some possible ways to address the labour shortage though. One of the ways to get more people working in the required roles is through immigration, although that's 'not guaranteed', according to O'Toole. Similarly, the economists suggested that Ireland could benefit from having some large-scale international development companies doing business here. O'Toole also said that modernising construction techniques and using new technology may also help to speed up construction and therefore free up workers earlier. But overall, O'Toole said the ESRI remains 'pessimistic' about housing construction this year and into next year. 'We're just in and around 33,000 units for this year, which is 1000 shy of our previous forecast, and we've held next year's forecast at about 37,000 units.' Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
