Central Bank move may have pushed house prices higher, ESRI suggests

The average loan to income ratio in the Irish mortgage market is back to multiples previously seen at the peak of the Celtic tiger

In 2022, Central Bank of Ireland governor Gabriel Makhlouf told reporters that the changes to its mortgage lending limits could lead to a 'modest' rise in house prices.  

The Central Bank has likely fuelled higher house prices by loosening mortgage lending rules too early, a report by a leading economic think tank has suggested.

The Economic and Social Research Institute (ESRI) said it appears changes in credit standards over recent years are “once again” leading to residential prices ticking upwards.