Peter Cleere (Carlow-Kilkenny, Fianna Fail)
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440. To ask the Minister for Finance how he plans to expand the role of Ireland’s credit union sector in the housing market; and if he will make a statement on the matter. [12350/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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The credit union sector is an important contributor to the housing market in the area of house lending and investment in social and affordable housing via the Credit Union Approved Housing Body (AHB) Fund. This is in addition to the provision of personal loans to fund home improvements and retrofit schemes.

Credit union house lending has increased significantly, with 43% year on year growth from December 2023 to December 2024. This growth demonstrates the ability of credit unions to provide house lending/mortgage products and the level of demand from its members.

I expect that credit union house lending will continue to grow significantly in the coming years. This growth could be accelerated by:

1. The provisions of the Credit Union (Amendment) Act 2023, which now permits credit unions to refer, participate or syndicate house loans, thereby increasing access to products for its members.

2. The proposed changes published by the Central Bank under Consultation Paper 159 - Consultation on Proposed Changes to the Credit Union Lending Regulations. The proposed amendments will

enable credit unions to provide more house lending to its members.

3. A mortgage Credit Union Service Organisation (CUSO) has been established with a sizeable proportion of the sector committing funding to the project. In 2025, the mortgage CUSO will launch standardised house lending or mortgage products on behalf of the credit union sector.

I also believe the credit unions have a significant role to play in supporting their local communities' social and affordable housing needs through the Credit Union (AHB) Fund.

The Credit Union AHB Fund is a fund that all credit unions can invest their members' savings in. The Fund will then provide loan financing to AHBs in respect of completed social and affordable units.

Investment in AHBs is a permitted investment under credit union regulations introduced by the Central Bank of Ireland in March 2018. Under these regulations, it is estimated that over €1 billion can be made available by credit unions to invest in AHBs.

As Minister for Finance, I intend to support the credit union sector to grow their house lending loan book, invest in the Credit Union AHB Fund, and continue its provision of loans for home improvement and retrofits. I will also engage with stakeholders and consider all suggestions to expand the role of credit unions in the housing market.