Davy Morning Equity Briefing
Nov 28, 2025
Irish banks
October mortgage approvals: trends remain strong despite softer volumes
Mortgage approval values hit a record on a rolling 12-month basis, reinforcing the strength of long-term market trends despite softer volumes in October. First-time buyers (FTBs) remained the dominant segment, while activity among second and subsequent buyers (SSBs) slowed. Remortgaging and top-up lending rebounded sharply. Overall, the mortgage market remains strong, but focus will be on accelerating the supply of housing.
UK Building Distribution and Products
Foundations in place but recovery still on hold
It has been a bruising 2025 for our UK-listed building distribution and products coverage list. Another year of earnings disappointment has, not surprisingly, impacted sentiment. Looking to 2026, the outlook for UK construction remains muted, and profitability will remain depressed in a historic context. Our top pick at present is Grafton, with its investment case supported by a diverse end-market exposure, a cash-rich balance sheet and an undemanding valuation.
