Housing Agency chief says 20% deposit for new homes is too high

The CEO of the Housing Agency said the 20% deposit needed for first time buyers is too high in some cases.

New Central Bank measures, due to kick in from January, will mean prospective homeowners can only borrow 80% of the house price, and will have to save the other 20% themselves.

John O'Connor said it is important that those looking to get onto the property ladder are not priced out of the market.

"For first-time buyers, if they have saved their deposit, 20% may be too high," he said.

"15% or 10%, depending on … their financial management of their accounts. Having saved a deposit is more important than the size of the deposit, and we'll be making some recommendations to the Central Bank in relation to that."

The Housing Agency is a government body established to support housing functions in local authorities and other housing bodies. It advises on housing policy, conducts research, and provides assistance to local authority housing projects.