Update 10.15am: A mortgage broker has today said that new lending rules will not lead to a widespread return of 100% mortgages.
Residential property prices increased by 7.2% on average across the country in the year to August.
The rise in house prices, despite stringent new mortgage lending rules, has been attributed to the proportion of ‘corporate’ investment in the Dublin residential property market.
Finance Minister Michael Noonan has admitted that his plans to help first-time house buyers in the Budget does run the risk of increasing house prices.
House prices outside Dublin are rising rapidly as a result of the Central Bank lending rules brought in last year.