Builders urged to tap into huge pot of Government finance to build houses in Laois

A Government-backed housing finance agency which has loaned over €1 billion to developers has urged builiders to come forward with plans as part of efforts to ramp up the house supply in Laois.

Home Building Finance Ireland (HBFI), which set up by the Government to fund the delivery of new homes, outlined its plans to fund more new homes in the Midlands region at what it called a "major stakeholder engagement event" in Portlaoise on Thursday, March 2.

It says it has already approved over €1.2bn to fund over 5,700 new homes in 21 counties across Ireland – including six developments in counties Laois and Offaly.

However, just one project has got off the ground in Laois with the agency's support. Ard Brannagh Development off the Dublin Road in Portlaoise. The development consists of a mix of three and four-bedroom detached and semi-detached homes. It's being built on the temporary site of the former Gaelscoil Phortlaoise in the Heathfield housing estate.

A statement said the event in the Midlands Park Hotel was told that HBFI plans to fund additional homes in Laois and Offaly and neighbouring counties. Attendees were told that HBFI is keen to hear from housebuilding firms that are active in these counties.

HBFI said the event was attended by representatives of housebuilding companies, developers, local authorities and other "key players" in the Midlands.

HBFI said its focus on Laois and Offaly is part of its strategy of funding new homes in regional locations, to build on its success in funding developments in cities and commuter towns.

While it has already funded projects in Portlaoise, Tullamore, Mucklagh and Daingean, HBFI said is open to working on new projects both in these towns and others in the region. 

Ms Dara Deering is the Chief Executive of HBFI.

"HBFI is committed to supporting the development of new homes in regional areas, such as Laois and Offaly and neighbouring counties, to ensure that these areas can continue to grow and thrive.

"We know that lots of people want to buy new homes in these counties and that’s why we want to provide the finance to make these homes a reality.

"Our stakeholder engagement event in Portlaoise provided a valuable opportunity for us to engage with local stakeholders and to discuss how we can work together to support the development of new homes in the region,"

The HBFI statement concluded by saying it is encouraging housebuilding firms in the region to contact HBFI or visit its website, www.hbfi.ie, to find out more about the finance it can provide for new homes.

The HBFI says it was incorporated in December 2018 to provide funding at market rates for commercially viable residential developments in the State. Its establishment by the Government was part of a wider response to Ireland’s housing supply shortage that,

Home Building Finance Ireland (Lending) DAC (HBFI(L)) is a wholly owned subsidiary of HBFI and is its operating (lending) entity. It is not a bank. HBFI says it offers a number of different funding products depending on the type of residential development being undertaken.

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HBFI operates as a private company wholly owned by the Minister for Finance and was formed under the Companies Act 2014 and the Home Building Finance Ireland Act 2018. HBFI is an independent legal entity with its own Board and a commercial mandate, providing development funding to residential development projects. Its aim is to help address the shortfall of funding available in the open market.

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In January 2023, HBFI said it has grown total loan approvals to €1.248bn at the end of 2022, an increase of 49% on the €835m at the end of 2021.

At the end of 2022 it had approved funding for 5,717 new homes in 99 developments in 21 counties. Social housing accounts for 25% of the new homes approved for funding. A total of 1,245 HBFI-funded units have been sold, with a further 1,819 contracted for sale or sale agreed as at the end of 2022.