First-time home buyers have hit "record borrowings" this year, with Bank of Ireland alone receiving half a billion euro worth of mortgage applications from this sector, new figures show.
The number of applications from first timers in the market has increased by 25 per cent over the same period last year.
Bank of Ireland said the trend reflects the strengthened purchasing power of first-time buyers as a result of strong wage inflation, reductions in interest rates and stamp duty obligations.
Today's figures also reveal the combined average salary of first-time mortgage applicants has risen by 64 per cent in the past decade, from €39,251 in 1994 to €64,409 last year.
The average salary of sole applicants in 2004 was higher, at €47,024 for men and €42,970 for women. The average first-time buyer mortgage now stands at €200,000, which translates to a monthly repayment of around €1,200.
Bank of Ireland said the reduction in stamp duty on second hand houses had resulted in a 3 per cent increase in first-time buyers purchasing second hand houses in the first four months after the last budget.
Olive Moran, marketing manager of Bank of Ireland Mortgages, said further increases in second hand house purchases by first time buyers are likely.
"We don't believe we are seeing the full impact of the stamp duty reductions on second hand houses just yet. The reductions have only been in place four months, therefore, in the future, we believe that there will be a greater proportion of first time buyers opting for second hand houses," she said.
Research published by Bank of Ireland Mortgages today also reveals that one in four first-time buyers benefit from cash gifts to help them buy their homes, with the average amount being €30,000.
The average individual saves €16,500 before applying for a mortgage, according to the bank.
More men than women buy property on their own, with six out of 10 such purchasers being male.
The age of first-time buyers is also decreasing, with the average age now at 32, down from 35 in 1990.