Altogether, 10,435 new buyers drew down mortgages in the first half of the year, compared with 15,802 between January 1 and June 30 last year — a drop of 5,367, or almost 30pc.

Pat Farrell, chief executive of the Irish Banking Federation which produced the figures, said many first-time buyers were getting loan approvals but were reluctant to buy while house prices were still falling.

The mortgage market is being hit collectively by negative consumer sentiment, an oversupply of properties and the uncertain economic outlook.

Most lenders have increased the rates they charge new borrowers by about 1.5pc, in a move that will add roughly €200 to monthly repayments on a €250,000 loan over 30 years.

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