Mortgage rules ‘will do nothing’ to slow prices

The Central Bank’s new rules on mortgage lending will do nothing to temper rising house prices but will increasingly open the market to investors at the expense of first-time buyers.

House price inflation will not be moderated by the restrictions introduced last month in a bid to quell demand and limit credit availability but will make the market increasingly attractive to investors, according to property experts, Savills.

The restrictions will fuel rental price growth and provide a solid demand platform in that market which will subsequently prove alluring to investment-focused buyers and increase competition for first-time buyers.