Despite the resurgence in the property market, mortgage approvals fell last month, according to data from the Irish Banking Federation (IBF).

The IBF’s latest mortgage approvals report showed a total of 1,494 mortgages were approved in February, a 5.9 per cent decrease on the previous month.

Nonetheless, the year-on-year trend remained in positive territory with the number of mortgages rising by 32.6 per cent on same period last year.

Of the mortgages approved in February, 1,397 or 93 per cent were for house purchases.

The value of mortgages approved in February was €252 million, of which €243 million or 96 per cent was for house purchase.

The value of mortgage approvals increased by 40.8 per cent year-on-year and fell 8.7 per cent month-on-month.

Commenting on the figures, IBF chief executive Noel Brett said: "February's mortgage approvals figures have shown considerable growth on a year-on-year basis with the volume and value of approvals up over 32 per cent and 40 per cent respectively on the same period in 2013."

“And while we have seen a decline on a monthly basis, due to seasonality factors arising in the first quarter of each year, the all-important year-on-year trend is a positive indication that mortgage activity is strengthening and the market is growing - a trend we hope to see sustained in the months ahead.”

Mr Brett, however, warned the, continued recovery and growth in the mortgage market will crucially depend on the acute shortage of suitable properties in key locations of demand being addressed.

“While the Government has flagged its concern about this and its intention to address it, the publication of detailed measures is awaited,” he said.

The Professional Insurance Brokers Association (Piba) said the figures indicated a sizeable drop at a time when mortgage approvals "should be ramping up to at least meet a reasonable proportion of the pent up demand in the market."

Piba's Rachel Doyle suggested a normally functioning market should be lending somewhere in the region of €8 billion to €10 billion annually.

“The figures, while up 32.6 per cent on February 2013 still have a long way to go and are clearly coming from a very low base. In short the figures are indicative of a dysfunctional market,” she added.