Recent data from mortgage broker doddl.ie shows a sharp rise in borrowing linked to home improvements, suggesting more households are upgrading their existing properties rather than trading up.
Mortgage top-up drawdowns reached €463m in 2025, the highest level in 15 years, while mortgage switching drawdowns climbed to almost €1.7bn, representing a 52pc increase compared with 2024.
The figures point to growing numbers of homeowners releasing equity from their properties to fund extensions, renovations or other upgrades.
Chief executive of doddl.ie, Martina Hennessy, said the trend reflects the lack of larger homes available for buyers who might normally move up the property ladder.
“With so few larger homes coming up for sale, many households who would normally move are instead choosing to renovate their existing property rather than compete in a very tight market,” Ms Hennessy said.
Ms Hennessy said strong house price growth in recent years has left many homeowners with significant equity in their properties, making it easier to finance improvements.
“Strong house price growth means many homeowners now have significant equity built up. Increasingly we’re seeing people release that equity through switching or mortgage top-ups to fund extensions or upgrades, effectively turning a starter home into their forever home,” she said.
According to Ms Hennessy, more than half of mortgage switcher applicants at doddl.ie are now releasing equity from their homes, either to finance renovation projects or consolidate existing home improvement loans.
Separate figures highlight the wider supply pressures shaping behaviour across the housing market.
A recent housing market monitor from the Banking & Payments Federation Ireland (BPFI) shows 36,284 homes were completed in 2025, a 20.4pc increase compared with 2024, marking the highest annual level recorded since the period leading up to the financial crisis.
However, new construction activity slowed sharply last year. Just over 16,000 housing commencements were recorded in 2025, down from more than 69,000 starts in 2024, when developers rushed to begin projects ahead of the expiry of development levy waivers.
Commencements fell sharply in key local authorities, particularly Dublin City, Fingal, and South Dublin, with activity declining by almost 84pc in Fingal and South Dublin.
Self-builds accounted for 23pc of all starts, the highest share since 2018, the BPFI report said.
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