Irish banking lending growing durably again
Today’s Money and Banking statistics show Irish household deposits continue to grow robustly, up 4.1% in the year to October to €159bn. Lending to households was up 2.8% to €103bn, split between 2.6% growth in mortgage lending to €85bn and a 3.6% rise in other household lending to €18bn. Despite weak housing market liquidity, the quantum of first-time-buyers taking on fresh mortgage debt is now sufficiently large to offset repayments by existing homeowners. A key part of this process is that Irish house prices are now 14% above peak Celtic Tiger levels, the average mortgage drawdown now €308,000 vs €270,000 in 2008.Nonetheless, the growth in lending is still being exceeded by household incomes and deposits- so the process of deleveraging is continuing. In Q2 2024, the Irish household debt to disposable income ratio was 92%, its lowest level since at least the turn of the century.
Read the weekly in full here: