Mortgage Approvals in Ireland Slump Sharply in January

Mortgage lending in Ireland fell sharply in January 2026, according to industry figures, signalling a notable drop in housing market activity at the start of the year. Data from the Banking and Payments Federation Ireland (BPFI) show that the number of mortgage approvals reached the lowest January level on record outside the initial Covid-19 lockdown period, reflecting subdued demand among both existing homeowners and first-time buyers.

Record Low Approvals for Home Movers

In January 2026, just 565 mortgage approvals were recorded for people looking to move homes or trade up, marking the worst performance for this category of lending since records began, excluding the first months of pandemic-related disruptions. This represented a 23.3 % decline compared with January 2025 and suggests that many potential movers have been deterred by market conditions.

Across all segments, the total number of mortgages approved during the month was 3,034, down more than 10 % year-on-year. The total value of these approvals came to €954 million, about 6.5 % lower than in January of the previous year, indicating that while fewer mortgages were sanctioned, the average size of loans remained significant amid sustained property price levels.

First-Time Buyers Also Affected

First-time buyers — typically the largest cohort in the mortgage market — also saw reduced approval numbers. This downturn among new entrants to the housing market underscores broader caution among borrowers and reflects persistent affordability challenges as prices remain elevated.

The slump in approvals coincides with signs of a constrained housing supply, particularly on the second-hand market, which has limited transaction activity and the availability of properties for buyers to move into. Additionally, construction starts over the past year have slowed sharply, further tightening overall housing stock.

As experts from International Investment report, the significant decline in mortgage lending approvals in January highlights ongoing pressures in Ireland’s housing market, where limited supply and cautious buyer sentiment combine to slow transactional activity and challenge access to housing finance.