First-time buyers' typical income now over €90,000 when average salaries are less than €50,000, banking review shows

• Published date: 25 May 2023
• Author: Sean Murphy
• Publication title: DublinLive (Ireland)

The figures were published yesterday by the Banking and Payments Federation Ireland in its review of the domestic mortgage market. A report by the lobby group stated that the "median basic household income" of first-time buyers of new homes in the second half of last year was €91,000

It was lower at €74,000 a year for first-time buyers of existing properties in the same period, but rose sharply for new homes and rose again to €109,000 for mover purchasers, while the typical, or median, income of first-time buyers of new homes in Dublin was €103,000.

The household incomes highlighted by the BPFI are in stark contrast to average full-time salaries, which are just under €50,000. BPFI chief Brian Hayes suggested that the help-to-buy grant would help to bridge the affordability gap for first-time home buyers. He said: "First time buyers can only get the help-to-buy grant if they buy a new property. They can't get it if they're buying second hand. In many cases, that €20,000 to €30,000 makes a huge difference to bridge the gap."

He added: "Since Covid, we have seen a dramatic rise in house price inflation. "Average prices now for first-time buyers across the country are €320,000 and around €250,000 is being borrowed against that. There has been a huge amount of savings in the economy. The CSO said, pre-Covid, savings [for mortgages] was 10% and is now about 20%."

The BPFI's latest Mortgage Market Profile Report also found that monthly mortgage repayments have increased considerably since 2020. Repayments have risen to more than €1,250...