Central bank holds firm on mortgage lending rules despite criticism of ruining housing market

The Central Bank dug in over its new mortgage lending rules despite claims the restrictions are ruining the housing market and preventing young couples from getting on the property ladder.

Stefan Gerlach — the No. 2 at the Central Bank — made clear there would be no going back to flirt with loose lending practises that led to the devastating Irish property bust and said the home-loan controls were here to stay.

Mr Gerlach said measures designed to safeguard the economy from another property crash — what the Central Bank calls its macro-prudential policy — cannot be expected to solve the deep-seated housing crisis rooted as it is in the lack of supply of new housing.