Central Bank rules ‘will stem bubble’

The number of mortgage loans drawn down by home buyers has rebounded to their highest level for seven years, but new Central Bank restrictions on lending will likely stem any new credit-fuelled house price boom, analysts predict.

New figures from industry body the Banking and Payments Federation confirmed that first-time buyers, and not investors, are now driving demand in the housing market.

The number of new loans drawn by home purchasers climbed to 5,600 loans during the first three months of the year from the 3,425 loans drawn down a year earlier, the figures show.