Annual mortgage lending growth fell to 8.5 per cent in September, the lowest level since September 1986, according to new statistics released today.
Monthly statistics from the Central Bank of Ireland showed residential mortgage lending grew by €736 million last month, ahead of the €508 million reported in August.
In a statement the Central Bank said that despite tighter criteria "lending to households for house purchase remains active, albeit at a much slower pace than during the peak of 2006".
Overall private sector credit showed a decline last month for the first time since January 2003, although the Central Bank said the decline was technical rather than as a result of more loans being repaid than were taken out.
Among these factors was the reclassification of €1.4 billion of loans by one credit institution and the closure of an IFSC credit institution which removed around €450 million of private sector credit last month.
The result was a decline of €329 million in private sector credit last month bringing the total outstanding credit to €399.6 billion.
This trimmed the annual growth of public sector credit to 10.7 per cent from 12.9 per cent in August. Had the technical factors not arisen, the Central Bank said private sector credit would have increased by over €1.2 billion in September and would have seen the annual rate of credit growth hit 11.1 per cent.
The amount of debt on credit cards hit €3.1 billion in September, but the annual rate of growth fell to 9.3 per cent from a revised 10.1 per cent in August.
Irish resident non-government deposits increased by €1.5 billion in September.
