Noonan: Banks’ mortgage deals will help stabilise rents

Banks offering interest-only mortgages and other incentives to buy-to-let investors would help stabilise rents, Finance Minister Michael Noonan said, adding that the jump in Dublin house prices was not a cause for concern yet.

However, the Government was urged to take comprehensive action now to ensure speculators sitting on huge tracts of development land were encouraged to release it to prevent another housing boom and bust.

Mr Noonan said he would pursue getting some of the funds put into the banks back from the bailout fund, the ESM, “in the course of next year”.