Cash is King in Ireland's property market

Customers are also changing providers at higher rates

Cash is King in Ireland's property market

Joe Giddens / PA Wire

The latest mortgage lending statistics for the first three months of the year reveal that 50% of all homes here are still being bought by cash buyers who don’t need a loan.

Overall mortgage lending increased by 2.6% during the period to €1bn but the increase was principally driven by mortgage switching activity - it almost doubled to €78m.

Lending for house purchases slipped by close to 2% and given the much sharper recent fall in mortgage approvals, this implies that those who are taking out loans to buy a new house are borrowing more.

The average mortgage values have risen to €193,700 – the highest level for six years.

Davy chief economist, Conall MacCoille joined Vincent Wall on Breakfast Business earlier to review the figures, he warned that incentives such as "help to buy schemes" could push up housing prices further, without addressing the current lack of supply in the market.

He added that a large portion of the cash purchases in the industry are from property funds, but it is "certainly not just" commercial buyers who are paying cash.

A report published earlier in this week showed that British parents and grandparents are giving their offspring £5bn  per year to help them get a foot on the property ladder.

The sum makes the 'bank of mum and dad,' the 10th biggest mortgage provider in the UK.