Its been said over and over again. Let market forces do their work !!
Yes, allow the banks to implement the 80% LTV maximum. This is prudent banking policy and should be done.
This will put pressure on the rental market as many buyers are then unable to purchase houses. As rents rise only the better-off can afford to rent.
As the rental market becomes "unworkable" for weaker earners, many will make the decision to relocate. This will result in a tighter labour market in Dublin. In my view this will push up wages and salaries in the Dublin area and this is what is needed.
As the labour market contracts, some employers will also seek to relocate "the work" else where, and ideally to places like Kildare , Meath etc
The formula that we are trying to hatch in other parts of this thread is completely unrealistic. You cannot expect to build lots of cheap housing in a booming city. Booming cities are necessarily expensive due to the scarcity of land and due to the supply / demand for same. People will need to realise that if you want to live in a prime part of Dublin, then you may have to settle for a modest apartment instead of a spacious house. Its not realistic to expect the impossible.
Whatever policy finally emerges, we are sure about one thing in the short to medium term - too many buyers chasing too few properties in Dublin. At least by restricting the availability of mortgages, house prices will be held in check. By allowing FTBs to access 90% financing will only drive prices up and still there wont be enough properties to go around.
We need high level policy making here, diversion of jobs to cheaper areas, incentivising pensioners to move out and down etc etc