HBFI Loan Approvals Reach €3.78bn as Funding Pipeline Expands to 19,399 Homes
State-backed lender increases approvals by 14% in six months, with 80% of lending supporting SME builders and 87% of projects backed with less than 35% developer equity.
17 July 2026 | editor@breakingground.news
Home Building Finance Ireland (HBFI) increased total loan approvals to €3.776 billion by the end of June 2026, a 14% increase from €3.323 billion at the end of December 2025, as the State-backed lender continued to expand funding for residential development across Ireland.
The latest figures show HBFI has now approved finance for 19,399 homes across 256 residential developments in 25 counties, representing a 17% increase on the 16,558 homes supported six months earlier. The approved pipeline comprises 13,540 houses (70%) and 5,859 apartments (30%).
The lending data highlights the growing role HBFI continues to play in financing Ireland’s housing delivery, particularly among smaller and regional developers. According to the lender, 80% of all funding approvals have been for loans of less than €20 million, reflecting its continued focus on SME homebuilders.
The update also demonstrates HBFI’s role in supporting developers facing equity constraints. Eighty-seven per cent of approved loans cover more than 65% of total project costs, enabling projects to proceed where developers may have lower equity contributions than traditional commercial lenders typically require.
Construction activity is continuing to progress across the approved portfolio. Of the €3.776 billion approved, €2.755 billion, or 73%, has already been drawn down across 168 developments, supporting the delivery of 15,610 homeswhere construction is underway or complete. HBFI noted that there is typically a three to six-month period between loan approval and initial drawdown.
Homes funded through the scheme are also progressing through the sales pipeline. By the end of June, 8,057 HBFI-funded homes had been sold, while a further 2,972 units were either contracted for sale or sale agreed.
The average HBFI loan facility has increased slightly to €14.7 million, compared with €14.3 million six months earlier, while the average residential scheme financed has grown from 71 units to 76 units. Individual facilities range from €1 million to €113 million, with an average loan term of 23 months.
The composition of HBFI’s funding portfolio reflects a broad mix of housing tenures. Of the 19,399 homes approved, 10,545 units (54%) are intended for owner-occupiers, 6,702 homes (35%) are designated for social and affordable housing, 1,160 units (6%) are private rental homes, and 992 homes (5%) are being delivered under Part V planning obligations.
Within the housing mix, houses dominate owner-occupier delivery, accounting for 10,084 homes, while apartments make up the majority of social and affordable housing provision, with 3,876 units approved.
The results follow HBFI’s publication earlier this year of The Scaling Challenge, which examined the structure of Ireland’s homebuilding sector. The report found that 90% of Irish homebuilders deliver fewer than 50 homes annually, highlighting the importance of improving access to development finance for smaller builders if housing output is to increase.
Tánaiste and Minister for Finance Simon Harris said the latest performance demonstrated HBFI’s continued role in supporting developers across all tenure types and noted that the research on SME homebuilders provides an evidence base to inform future housing policy.
HBFI Chief Executive Dara Deering said the organisation would continue to develop funding solutions informed by the findings of The Scaling Challenge, particularly for SME homebuilders and developers facing equity constraints.
Established under the Home Building Finance Ireland Act 2018, HBFI began operations in 2019 with funding from the Ireland Strategic Investment Fund. The organisation secured an additional €200 million lending facility from Danske Bank in late 2025 to expand its lending capacity, following an independent Government review which concluded that HBFI’s continued operation remained necessary given prevailing market conditions.
