Key Takeaways
| Main Point | Why It Matters |
|---|---|
| HBFI increased loan approvals in 2025 | Positive progress, but still limited in scale |
| SME builders still find it hard to get capital | They are crucial to increasing housing supply |
| €200m extra funding is insufficient | It does not change housing supply behaviour at the national level |
| The Apple tax fund offers a once-in-a-lifetime solution | One-off capital suits long-term housing assets |
| Direct State building needs to happen now | Markets alone cannot fix structural undersupply |
Summary of the Main Points from the Irish Times Article
Home Building Finance Ireland (HBFI), the State-backed housing lender, increased total loan approvals to SME builders by 25 % in 2025, reaching more than €3.3 billion in financing commitments for new homes. Irish Times
Created in 2019 by the Irish Government, HBFI has now approved funding for over 16,500 homes across 233 developments in 25 counties, with houses making up the majority and apartments about a third.
Around 6,800 of these funded homes have been sold, and nearly 4,100 units are contracted or ‘sale agreed’ by the end of 2025.
HBFI’s increased lending capacity was supported by an expanded facility (including a new €200 million arrangement) to help it continue financing projects, particularly for SME developers and builders that find it difficult to get loans from standard banks.
A Positive Step That Still Falls Short
As Ireland’s primary State-backed housing lender, the increase in loan approvals to increase housing supply is clearly a step in the right direction.
It shows that:
- The State recognises financing constraints for SME builders as a barrier to supply
- SME builders are a part of the policy agenda (albeit a small one)
- Public intervention in housing finance is indeed essential
However, acknowledging progress does not mean ignoring scale.
In the context of Ireland’s current housing crisis, €200 million is not transformative funding. It is barely incremental. And incremental responses cannot fix a structural problem.
Why HBFI Matters Now More Than Ever
HBFI plays a critical role in Ireland’s housing system because it serves a group that traditional Irish banks have overlooked since the 2008 housing crash – small and medium-sized builders.
SME builders are responsible for:
- Rural housing
- Small estates
- Infill developments
- Town and village regeneration
- Low- to medium-density schemes
These are precisely the types of homes Ireland needs more of.
Yet SME builders in Ireland consistently face:
- High upfront capital requirements
- Limited access to development finance from banks
- Exposure to market volatility
When finance dries up, these builders do not just reduce the amount they build. They simply stop entirely.
Why €200 Million in HBFI Funding Does Not Change Housing Supply Behaviour
To understand why the latest funding increase falls short, we need to think in practical terms.
A €200m fund:
- Supports a limited number of schemes
- Is spread across many counties
- Is quickly absorbed by rising construction costs
It helps individual projects proceed, but it does not:
- Create enough to increase supply enough to put a dent in the housing crisis
- Create confidence to expand operations
- Support long-term workforce hiring
In other words, it does not “wake up” the SME builders necessary to deliver the most social and affordable homes.
The Real Sleeping Giants of Irish Construction – SME Builders
Ireland’s major housing policies have often benefited large developers. In reality, SME builders are the backbone of delivery, especially outside major cities.
Many of these builders:
- Have planning permission to carry out projects
- Own or control suitable land for construction
- Have local knowledge and labour networks
- Want to build homes
What they lack is patient, predictable capital due to Irish banks largely shutting them out since 2008.
Without that:
- Projects stay on the shelf without being carried out
- Workers leave, or are poached by larger developers
- Housing supply does not improve
If the State genuinely wants SME builders to build, funding must be sufficient to change builders’ behaviour enough to activate sites, hire workers, and start projects.
An additional say, €1–2 billion in funding to HBFI could:
- Signal long-term commitment by the government to actually resolve the crisis
- Allow faster loan approvals for SMEs
- Reduce reliance on fragile private lending
- Support hundreds of housing projects simultaneously
At that scale, builders will stop asking “is this viable?” and start asking “how fast can we deliver?”
That is the supply shift Ireland desperately needs right now.
Why the 14bn Apple Tax Fund Is the Best Source to Fix the Housing Crisis
The €14bn Apple tax windfall, which was finally collected in full by the Irish Government in July 2025, is a once-off, non-recurring amount of money.
- It was money that was owed to the Irish State since 2016
- It is not borne by the common taxpayer, so this fund is an incredible public service
- It is not a foreign loan, so there are no state obligations or strings attached to a foreign lender.
That is precisely why it should be allocated fully as capital to resolve the housing emergency right now, rather than being stored away in the well-intentioned but non-urgent National Development Plan where the money now sits.
The mistake would be for the government to treat this Apple fund as a list of unrelated projects. There lies a unique opportunity to use this once-in-a-lifetime money for intentional, coordinated deployment in fixing the Irish housing crisis.
This money could be used by the Government for any of the following:
1. Properly Fund HBFI
With expanded capital, HBFI becomes:
- The stabilising force for SME builders
- A counter-cyclical lender that continues providing finance to SMEs when private lenders pull back during economic downturns. This will help keep relevant construction and housing supply moving instead of stopping when markets weaken.
- A reliable partner for councils and developers
This is the missing link today.
2. Acquire Vacant & Easily Restorable Derelict Properties
Ireland has over 80,000 vacant properties.
Empowering local councils to:
- Purchase easily-restorable vacant & derelict properties from willing sellers
- Contract local SME builders directly to restore them
Would add housing supply far faster than new builds and also keep skills local and capacity active.
3. Retain Homes in Public Ownership
By keeping these newly-restored homes in Social housing and Cost-rental stock, the State:
- Reduces long-term reliance on subsidies such as HAP
- Stabilises rents nationwide
- Creates permanent public assets. Money earned from these assets can be used to build more affordable homes.
4. Improve the Current Planning System
Ireland’s planning system is known as the biggest obstacle to housing supply. It is typically plagued by long judicial reviews, as well as skilled staffing shortages across several municipalities.
Deploying this money strategically to improve the planning system could help address the housing crisis at the root.
Capital without the administrative capacity required achieves nothing in the end.
Why I Believe This Fixes the Root of the Crisis
From the various policies I have observed the Government implement since the start of this crisis (RPZs, apartment size reduction, VAT reduction, etc), it appears to me that Ireland’s housing problem is being treated as a series of emergencies.
In reality, it is a supply system failure.
By:
- Expanding the government’s ability to build and deliver housing directly
- Unlocking SME builders
- Reducing reliance on private rentals
We reduce pressure across the entire Irish housing market. This in turn will stabilise house prices & rents prices.
Progress Is Welcome, But Scale Is Crucial
HBFI increasing loan approvals in 2025 is a positive signal, since it shows that the State understands that loan finance, for SMEs especially, does matter.
But understanding is not enough.
If Ireland is serious about resolving the housing crisis, funding must match ambition. That means thinking in billions, not millions, and using once-off resources to create permanent solutions.
The Apple tax fund gives the State that opportunity.
What remains is the political balls and the will to act at scale.
