The Governor of the Central Bank says the new rules on mortgage lending are designed to stop people buying homes they can’t afford.
There's been mixed reaction to the new rules, one Clare based property retailer has welcomed them saying it will help the market stabilise here.
However the President of Ógra Fianna Fáil says it will prevent couples with young families progress up the property ladder.
The new rules mean first time house buyers will be allowed a maximum mortgage of 90 per cent on 220 thousand euro.
This is being welcomed in Clare by one property retailer who says – it will be achieveable given current market values.
Diarmuid McMahon of Sherry Fitzgerald McMahon says the new rules have ended speculation and now provide stability for those buying and selling homes in Clare.
However he says it will cause issues in Dublin.
The Governor of the Central Bank Patrick Honohan says the new first time buyers rule was designed with Dublin specifically in mind.
People hoping to trade up will have to save a larger deposit, of 20 per cent.
But Professor Honohan says in the long run, they’ll be better off but the President of Ógra Fianna Fáil disagrees.
Barefield's Eoin Neylon says it will add problems to an already difficult rental market:
The Taoiseach though says the new measures will help prevent people from borrowing more than the are capable of paying back.
