Two different surveys out on Tuesday give one clear message about the housing market. Solutions to the crisis will, by their nature, be long term. The Government can make significant efforts, but cannot hope to see quick results. In a world of overnight news cycles, this presents obvious political problems.
The first set of figures today, from Banking and Payments Federation Ireland (BPFI), shows that mortgage approvals for second hand properties hit a new low in January. There are a lack of homes to move to in a market that is “stuck”. Mortgage approvals for first-time buyers also fell, albeit that the total over the past year remains high.
Meanwhile, the latest Daft.ie report for the rental market shows that the supply of properties available to rent has hit a new low. There were 1,777 homes for rent nationwide on February 1st, down 22 per cent on the same date a year earlier and the lowest since the data series began in 2006. Again, supply is the key issue, with an increase in Dublin apartment completions, which had reduced pressure on the market to some extent, slowing towards the end of the year. Rental inflation has fallen from its post-Covid peak, but remained at 4.4 per cent in 2025.
The Government has moved to try to accelerate the provision of new housing and has also reformed the rental regime to try to increase the supply of apartments. But progress – if it can be achieved – will take time and the latest figures are further evidence of the depth of the crisis.
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They underline the lack of progress under the previous coalition – and the pressure now on the current Government. The political nature of the housing issue is that if progress is not made this year, then results will not show during the Coalition’s term. Ministers appear to realise that and an overdue attempt is being made to speed up infrastructure and housing delivery. Meanwhile, pressure is being put on the local authorities to increase the supply of zoned land – and the Government is hoping for a response on rental supply. Housing is a complex puzzle and only relentless effort and focus will yield results.
