Lenient property loan rules risk surge in prices

Central Bank rules making it easier for renters to buy homes risk inadvertently causing a fresh house prices surge if they occur alongside the Government’s previously announced help-to-buy tax break scheme, it has been claimed.

The concern was raised by opposition parties last night, despite housing, construction and finance groups saying both measures are badly needed to help people trapped in the rental market.

Under plans announced by Central Bank governor Philip Lane, first-time buyers will now only have to save 10% of the cost of their new home to receive a mortgage.