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Dublin – 30 June 2025 – Minister for Finance Paschal Donohoe has confirmed the continued necessity of Home Building Finance Ireland (HBFI) following the publication of its third statutory review under Section 24 of the HBFI Act. The review assessed HBFI’s relevance in today’s market conditions and its effectiveness in fulfilling its mandate to support residential housing development.
The review, available on the Department of Finance website, incorporates public consultation, stakeholder feedback, and input from HBFI. It concludes that while the housing finance landscape has evolved, HBFI remains essential, particularly in areas underserved by private lenders.
“HBFI has played a key role in improving access to finance for residential development since 2019. As we scale up housing delivery, targeted lending to segments such as SMEs and regional projects is more important than ever,” said Minister Donohoe.
Key review findings include:
- €2.67 billion in approved funding supporting up to 13,186 homes across 184 developments in 23 counties as of December 2024.
- Continued constraints in access to finance for small and medium-sized developers and in regional markets.
- Strong competition in other areas, particularly for social and affordable housing and for large developers, where HBFI’s involvement may risk displacing private capital.
The review recommends that HBFI continue operating, with a sharper focus on sectors with limited access to finance to ensure it delivers additionality rather than duplication. The next review is scheduled for 2027, or earlier if deemed necessary.
HBFI CEO Dara Deering welcomed the findings, stating:
“This review reinforces the importance of our role in addressing funding gaps in the market. HBFI will continue adapting its product offering to support viable housing projects, particularly for first-time buyers and renters.”
The Department of Finance noted that while the debt market has matured—with a broader mix of non-bank lenders now active—access to equity, especially for SMEs, remains a barrier to project viability. Stakeholders highlighted the importance of policy certainty and de-risking early-stage development to encourage sustained private capital participation.
