Homebuyers in Ireland hoping for a let-up in property prices will be slightly disappointed as it is likely to inch upward in year 2015, even as the Central bank reviews its proposal to restrict mortgage lending.
It undermines the complexity and severity of supply shortages, alongside the pent-up demand which tend to result in an upward trend in prices. Particularly in Dublin which has seen its property prices skyrocketed with an 18 per cent increase last year while house prices rose by a worrisome 16.3 per cent nationwide.
However, the Central bank is reviewing plausible credit loan rules to attenuate the risk of another credit driven property bubble. It plans to control loan to value and loan to income ratios by subjecting home buyers to a 20 per cent deposit on the property as well as loan amount limitation of three-and-a-half times salary for most buyers.
To achieve market stability, it still requires at least one to two years to decidedly balance out between demand and supply.
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