Recovery in Mortgage Lending Stalls as Cash Fuels Purchases.
The nascent recovery in mortgage lending stalled in 2013, as both the number and value of mortgages issued fell.
Cash transactions continue to fuel the resurgent property market.
According to the IBF / PWC Mortgage Market profile, the number of mortgages issued fell by 5.6% to 14,985, with the value of those loans dropping by a similar percentage, down to â‚¬2.5billion in 2013.
Rachel Doyle, Chief Operations Officer at the Professional Insurance Brokers Association, said a normally functioning market should be lending in the region of between â‚¬8 billion to â‚¬10 billion annually in mortgages.
The decline was particularly evident in the fourth quarter of last year, with mortgages down 13.9% by number and 10.3% by value year on year.
Goodbody Stockbrokers Economist Dermot Oâ€™Leary described the out-turn as â€œunderwhelmingâ€, adding that it can be partly explained by the low level of supply of properties and the presence of cash transactions, which he estimated accounted for 46% of transactions.
Â Article published on Tuesday, 25th February 2014 by The Irish Times.