Warnings from Government and financial institutions over the perilous position of aspiring first-time entrants to an already overheated residential property market were further underlined this week by the State's largest mortgage provider, the Irish Permanent. The Permo blames rising affluence for the trend towards lower home ownership. An overheated housing market is seen as an "unfortunate side effect of the stronger economies". But, be it boom or bust, lenders of capital like the Permo are usually ring-fenced from all but the most catastrophic of economic upheavals, despite howls of anguish over the slightest obstacle or restriction to their moneymaking capacity.
Right now Irish Permanent has its foot on the growth accelerator, low interest rates fuelling demand for cheap finance. The marketing pitch of our money is your money also translates into your cash begets our profit, quite legitimate in a public company. Irish Permanent again put its clients' cash to productive use last year, pre-tax profits rising 13.2 per cent to £55 million. Total lending surging 35.6 per cent to exceed £1 billion and the deposit base widened 12 per cent to nearly £3 billion. Mortgage loans in Ireland rose 21 per cent to £640 million, giving the Permo more than 20 per cent of all new mortgage lending last year.
Looking ahead, the institution is determined to remain in the fast lane of the financial services motorway, on the lookout for major growth opportunities in Ireland and Britain. A harder touch on the accelerator might be required with a soon-to-be-liberated First National now swinging into view in the rear view mirror.
