A new study has found that first-time buyers from Dublin are being forced to move to the commuter belt around the capital.

The Banking and Payments Federation Ireland (BPFI) found that nearly eight-in-ten first-time-buyers (FTB) moving cross-county to the commuter belt are from Dublin.

Meanwhile 31% of those moving to other counties in Leinster came from Dublin.

The commuter belt includes Louth, Meath, Kildare and Wicklow.

The BPFI Housing Market Monitor also found that the housing supply is increasing, mainly driven by a significant increase in new apartments.

Meanwhile, the number of mortgage approvals rose by 8.8% in the third quarter of this year compared to last year.

Mortgage approvals rose by 8.5% in same period.

BPFI chief economist Ali Uğur said affordability challenges are placing serious limitations on first-time buyers in Dublin.

He said the exodus to the commuter belt is putting pressure on infrastructure in the area.

He warned that this will likely “have a negative impact on the overall competitiveness of the Irish economy.”