Home Building Finance Ireland (HBFI), set up by the government to fund the delivery of new homes, has increased its loan approvals to €1.16 billion.
This marks a 38 percent increase from the €835 million recorded at the end of 2021.
In the first six months of this year, grants were approved for 5,210 homes in 86 developments across 20 boroughs, including for the first time in Counties Kilkenny and Limerick.
Social housing projects accounted for 23 percent of the new housing approved for financing.
This period, the busiest for the fund in terms of approval volume, means that HBFI has now committed 58 percent more than the €730 million originally allocated at the fund’s inception three years ago.
A total of 715 HBFI-funded units have already been completed and sold – 1,783 are for sale or have a sales contract.
Of the €1.16 billion in approved funding, more than 60 percent of the total committed funds have been drawn to date. According to HBFI, €737 million has been released, representing 50 developments with a total of 3,229 units being built or completed.
HBFI expects a delay of three to six months between the loan commitment and the first drawdown.
Individual loan facilities from HBFI range from €1m to €94m, with an average size of €13m. The terms range from six months to two years, with the average being 22 months.
“We remain vigilant against risks such as inflation in construction prices, but we will work closely with the homebuilders to whom we lend to help them meet these challenges and continue to increase the supply of new homes,” said CEO Dara deering
https://www.independent.ie/business/irish/government-fund-for-delivering-new-homes-grows-loan-approvals-to-116bn-41859562.html State fund for the provision of new housing increases the loan commitment to 1.16 billion euros