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Tuesday 28 November 2023 Dublin: 6°C
Sam Boal/Photocall
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Most Irish people say they won't be able to buy a house next year

This comes after the closure of the Central Bank’s consultation process on new mortgage restrictions.

SEVEN OUT OF 10 Irish people feel that new 20% mortgage deposit rule would be too restrictive.

The findings, which comes from a poll by Red C on behalf of the Society of Chartered Surveyors Ireland, shows that the majority of people feel that the new measures are too restrictive for them to be able to afford property.

Only 15% of those asked felt they would be in a position to stump up one fifth of a houses cost as a deposit.

In the survey, which asked 1,000 people, 20% said they would need to source some of the deposit through other lending sources.

Consultation process 

The Central Bank’s consultation process on changes to mortgage-lending regulation has now closed.

During the process, 110 individuals and 47 institutions made submissions.

In the new document today the bank state they “do not wish to regulate or directly control housing prices.”

Consultation paper CP87 looks into lending restrictions on house buyers that are set to be introduced next year, and will include loan-to-value (LTV) ratios.

LTV ratios refer to loans as a percentage of the total of the asset purchased.

Under the new regulations, individuals will be required to raise 20% of a houses value as a deposit, and will only be permitted to borrow up to three-and-a-half times their income.

This would be applied for those trying to buy private dwelling homes – and exclusions would be made in 20% of cases.

For properties being bought as buy-to-lets, borrowers will be restricted to borrowing 70% of a property’s value.

Department of Finance 

In its submission, the Department of Finance has argued that the rules applied in Ireland should differ from those applied internationally – as the Irish system is “novel”.

On account of this, it argues that a more graduated approach would be appropriate in the Irish market.

michael noonan Sam Boal / Photocall Minister for Finance Michael Noonan Sam Boal / Photocall / Photocall

The Department points to the Netherlands and Norway as two countries where LTV ratios were introduced at a lower level and gradually increased.

On the appropriateness of the measures, the Central Bank go on to say that the LTV ratios would not afford “very much protection to borrowers” and could lead to bigger loans.


The Central Bank has now issued a document detailing some answers to concerns individuals may have about the new rules.

In these, the Bank outlines that the main purpose of the new measures is to, “enhance resilience of the banking and household sectors to financial shocks and housing market developments”, and that the measures were being introduced now to contribute to “a stable and well-functioning mortgage lending market”.


There have been concerns that the introduction of the new regulation will make it more difficult for those trying to get onto the property ladder.

jim brown Sam Boal / Photocall Sam Boal / Photocall / Photocall

The measures have been criticised by Ulster Bank Chief Executive, Jim Brown, who has said that under the new rules two-thirds of home buyers this year would not have qualified for mortgages.

A firm date has not been set for the introduction of the regulations, although the Bank hopes they will come into effect in the early part of next year.

Read: House prices in Ireland are rising faster than anywhere else in the world

Also: Families turning to moneylenders charging up to 200% interest ahead of Christmas

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