building societies

building societies were established in the major Irish cities during the second half of the 19th century. In Dublin the high cost of new housing and the relatively small size of the artisan class meant that there was only a limited demand for their services. In Belfast, by comparison, housing costs were lower, the city was expanding rapidly, and the large number of skilled workers employed in the shipbuilding and engineering industries created a ready market for modest houses. By the 1880s there were a total of eight building societies lending money to Belfast builders. Several building societies were formed in the Irish Free State during the late 1930s in order to meet growing demand for owner‐occupied housing; however, their capital base remained weak. The 1942 Building Societies Act, which determined the financial basis under which they would conduct business, was in part prompted by demands that British building societies be permitted to operate in the Free State. However, the low level of personal savings meant that local authorities (and ultimately the exchequer) continued to provide the overwhelming majority of mortgages for private housing until the late 1960s.

Mary Daly