Mortgage lending to increase

There seems to be more & more proof that the rate of mortgage lending is on the increase. AIB yesterday announced that its mortgage lending target for 2013 is €2bn. The bank also stated that it lent €1.2bn in mortgages in 2012, representing 45% of the market (Bank of Ireland represented about 40% of the market in 2012). This implies that mortgage lending hit €2.7bn in 2012, higher than our forecast of €2.4bn, and 12% up on the 2011 total. Bank of Ireland last week reiterated a €2bn target for mortgage lending that it made last October and has also stated that it has already received €400m in applications for this fund. Permanent TSB said they would lend €350m in mortgages this year. If targets are met, mortgage lending would reach c.€4.5bn, which is almost 70% above the 2012 estimated level. We currently have 22% growth in gross lending for the market in our numbers (to c.€3bn), so clearly there is upside if these targets are reached. Gross lending will not get back to peak 2006 levels of €40bn but positive Irish housing market trends are likely to be a major feature in 2013

Buy to Lets to replace new builds.

For the next few years repossessed Buy to Lets are likely to replace new build semi’s/terrace’s as the property of choice for first time buyers according to Harry Sothern, Chairman of REA. With the banks/Building Societies less willing to tolerate interest only payments, the numbers of buy to let style properties coming to the market is set to increase dramatically. Many of these will be in unfinished estates and will be priced very much to sell. Purchasers who are interested in more mature areas will find a considerable price discrepancy between the stressed/repossessed properties and those in the more mature locations. Interestingly the level of repossessed/stressed sales are likely to roughly equate to the housing need in this area for the next few years. The net result will be an obvious lack of new build (other than one off housing) in the near future.

REA O'Shea O'Toole in Waterford former Talk Talk premises

The Schivo Group, which manufactures high precision mechanical assemblies for the medical device and aerospace industries, has acquired the former Talk Talk premises in the IDA Industrial park in Waterford City. The Property comprises 3,337sq.m and the selling price is believed to be in the region of €500,000. REA O'Shea O'Toole has indicated that there is quite a lot of demand for these types of premises. More information on www.osheaotoole.com

REA Group Auction on the 5th of March in Dublin

REA announce a new date for their next Auction in Dublin on the 5th of March 2013. The Auction will take place in the Alexander Hotel, off Merrion Square in Dublin 2. There will be a mix of residential & commercial lots available. List of Lots will be announced on the 14th of February 2013.