Construction BUSINESS

Home Building Finance Ireland (HBFI) has marked a successful year by approving loans totalling €408 million, bringing its cumulative approvals since its establishment to an impressive €1.66 billion. The state-backed lender, committed to facilitating home construction, has exceeded its five-year target set in 2019 by financing the development of 8,495 homes. This significant achievement underscores HBFI’s pivotal role in addressing the housing shortage and supporting growth in the construction sector.

The funded homes are distributed across 129 developments in 22 different counties, showcasing HBFI’s extensive and impactful reach. Notably, over 2,800 of these homes have already been sold, and an additional 1,501 are under contract as of the previous year’s end, contributing to easing housing demand. HBFI’s ability to surpass its projections positions it as a vital player in the housing finance landscape, leveraging returns from previous investments to fuel new developments and stimulate the construction sector.

The Minister for Finance’s decision to extend HBFI’s lifespan after a comprehensive review reflects confidence in the lender’s impact. This move acknowledges the persisting funding gaps in the property market and underscores the crucial role HBFI plays in maintaining stability and fostering growth within the construction industry. Looking ahead, a thorough review in the coming year signals a commitment to ongoing evaluation and refinement of strategies, highlighting HBFI’s dedication to addressing housing challenges and fostering sustainable development for a lasting impact on Ireland’s property landscape.

Source: By Adam Maguire, Business Journalist, RTÉ