Tánaiste and Minister for Finance Simon Harris has secured Cabinet approval to draft the Home Building Finance Ireland (Amendment) Bill 2026, which would broaden HBFI's powers to finance the purchase of residentially zoned land before planning permission is in place.

The move targets a financing gap that particularly affects SME homebuilders at pre-planning stage, aiming to build a stronger pipeline of future housing projects. It follows engagement by the Department of Finance through the Industry Responsiveness Forum and HBFI's research, "The Scaling Challenge", which identified the constrained availability of zoned land as a significant obstacle to boosting housing supply.

While funding is typically available for developments on zoned, serviced land with planning permission, securing finance earlier in the process is far more difficult. This can impede SMEs that lack the equity to progress multiple sites, limiting their growth and delivery capacity. Extending HBFI's mandate is intended as a targeted complement to existing funding sources to help bring forward future schemes.

Following Cabinet approval today, the Tánaiste and Minister for Finance, Simon Harris, said: "Small builders are absolutely key to delivering homes and building communities right across Ireland.

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"But there is a very practical problem: Even where land has been zoned for housing, a smaller builder may struggle to get the finance to buy that land before planning permission is in place.

"That is the gap we are moving to close. We have zoned more land for housing, and we need to make sure smaller builders have a fair opportunity to turn that land into new homes.

"There is no magic wand when it comes to housing. Every lever we can pull must be used. This is another common-sense, practical step to help small builders grow, bring forward more projects and build more homes in towns and villages across the country.

"HBFI is an extremely effective body which has already approved €3.78 billion in funding, supporting the delivery of almost 20,000 homes across the country.

"By expanding what it can do, we can build on that work and help unlock the next wave of housing delivery."

Dara Deering, CEO of HBFI said: "The announcement by the Tánaiste and Minister for Finance Simon Harris offers an opportunity to address a specific challenge faced by SME homebuilders and to increase access to the finance they need to acquire zoned land.

"The availability of debt funding for zoned land was identified as a funding gap in HBFI's 'Scaling Challenge' Report earlier this year. This report examined the role of SME developers in housing delivery and how to increase their output in the years ahead.

"HBFI will continue to engage with stakeholders and develop funding solutions for SME homebuilders to enable them to expand their pipelines and accelerate housing delivery."

HBFI began operating in 2019 to increase new-home supply by providing commercial-term funding for viable residential developments nationwide. It adapts its products to address emerging market gaps. Its third strategic review, published on 30 June 2025, found HBFI had met its obligations under the HBFI Act and was positively influencing the wider development finance market. As of 30 June 2026, HBFI had approved €3.78 billion across 256 loan facilities, supporting 19,399 homes, with an average loan size of €14.7 million. Its suite of products funds schemes from five to 300 units, including: Small Developments (more than five units, up to €5 million), Housing and Apartment Developments (€5 million and above), Social Housing (for projects contracted to public bodies), Green Funding across its range, and Accelerate for larger developers who reach concentration limits with other lenders.