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New mortgage rules have taken ‘froth’ out of property prices

Early evidence suggests that the Central Bank’s new lending restrictions have taken the “froth” out of property prices, an economist with the regulator said on Tuesday, as new figures show a further decline in mortgage lending.

Speaking at a Sunday Business Post property conference in Dublin, Gabriel Fagan, economist with the Central Bank, said that tentative evidence suggests that the new measures, which restrict income multiples and loan to values for borrowers, have had a positive effect of removing “froth” from property prices, particularly in the Dublin residential market”.

Read the full details in the Irish Times

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