New Research Published On Housing Equity Withdrawal In Ireland

The Central Bank of Ireland has published joint research with the Central Statistics Office entitled 'Housing equity withdrawal in Ireland: 2000 – 2011'.

It summarises research presented to the Statistical and Social Inquiry Society of Ireland in May 2012.

At the peak of the property boom from 2005 to 2006, €.5 billion of mortgage top-up loans were drawn-down annually. This form of housing equity withdrawal accounted for one-third of all loans issued and 15 per cent of new loan balances.


By 2011, the value of equity release borrowing had fallen by 97 per cent, to just €95 million of top-up loans in 2011.

Housing equity withdrawal is more common where the head of the household is less than 40 years-old. However, the average loan for this group is smaller (€0,000) when compared with older borrowers aged 40 or above (€3,000).

Unsurprisingly, given the large proportion of housing equity withdrawal re-invested in property, there is a strong correlation between trends in equity release and construction output in housing. This appears to be the primary channel through which equity withdrawal affected the domestic economy in recent years.

(CD/GK)