Central Bank plan on property market due

The Central Bank will outline its plans to calm the property market today.

It comes a day after figures showed a 14% annual jump in asking prices around the country, and a 25% increase in Dublin.

The Central Bank is taking action to try and prevent a bubble forming in the recovering property market.

Limits will be put on the amount of money that banks can loan in a mortgage. They will likely take the form of loan-to-value limits and loan-to-income caps.

Governor of the Central Bank Patrick Honohan said last night he believed the measures could work and that they would have the desired effect.

A period of public consultation will take place once the plans are outlined, and it's thought the new rules will take effect in the new year.