ESRI calls for flexibility on new mortgage rules, including on 20% deposit rule

The ESRI has said there should be more flexibility on new Central Bank Mortgage regulations which mean buyers must have a deposit worth 20% of the asking price.

The Economic and Social Research Institute is giving a broad welcome to the new measures, but is recommending that they be applied depending on what is happening in the housing market.

Economist David Duffy said: "We welcome the measures," he said. "(However,) We think it should be more of a rule-based measure on the basis of various indicators that are happening in the housing market."

The ESRI generally expects strong economic growth next year and another fall in the unemployment rate to below 10%.