New research analyses down payment trends in Ireland and compares to other European countries

• Typical 2016 Irish home-buyer had 20 per cent deposit. For First-Time Buyers, it was closer to 15 per cent.
• In recent years, Irish deposits-to-value ratios have moved more in line with other European countries.
• Around one-fifth of Irish home buyers report receiving inheritance in years immediately preceding house purchase.

The Central Bank has published a new Economic Letter (PDF 5.43MB) by Jane Kelly and Reamonn Lydon which highlights trends in down payments in Ireland and compares Irish patterns to those in other European countries.

The authors show the median down payment for a non-Dublin FTB in 2016 was €25,000, well below earlier peaks. For Dublin FTBs, however, down payments have been rising steadily since 2012, reaching €50,000 (median) in 2016.

The Letter finds the median level of down payments in Ireland is at the lower end of the range relative to many other countries. Savings and inheritance patterns are remarkably similar across most countries.

Using data from the Household Finance and Consumption Survey, the authors show that around one-fifth of Irish home-buyers report having received an inheritance in the years immediately preceding the purchase. That is broadly in-line with most other European households. For Irish home-buyers, the value of the inheritance tends to be around half of the down payment amount.

The views expressed in this paper are those of the author only and do not necessarily reflect the views of the Central Bank of Ireland.