Central Bank urged to stop housing bubble

The Central Bank needs to crack down on mortgage lenders in order to stop a repeat of the "danger days" which led to the last property bubble, the chairman of the Oireachtas finance committee has warned.

Ciarán Lynch, who is also heading up the probe into the banking collapse which fed into the housing crash, expressed fears after price hikes of 40% in some parts of Dublin.

“We are seeing indications of the danger days that we last saw in the early 2000s when property inflation was running well ahead of national inflation, and we know what that led to,” said Mr Lynch.