Brendan Burgess
Founder
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I attach the Household Sections of the MFR (Macro Financial Review) - Brendan
The Central Bank is today publishing details of a call for evidence which will inform the first annual
review of the impact and effectiveness of the mortgage market rules. The analysis in today’s MFR
will prove useful for those wishing to make submissions. We look forward to receiving data-based
and other analytical submissions which will help inform our assessment.
In this context, the MFR notes a marked slowing in house price inflation, and a decline in house price
inflation expectations since introduction of the measures. Although the number of residential
property transactions continued to increase during 2015, activity in the market remains weak. The
report also highlights the scarcity of residential units for sale and rent.
The mortgage rules were enacted in February 2015 to enhance the resilience of households and
banks to financial shocks. We acknowledge that our measures impact individuals’ ability to access
credit and purchase houses. However, these loan-to-value and loan-to-income ratio limits are
designed to protect the system as a whole and limit the risk of a house price – credit cycle emerging
once again. And in this context, we must take a medium to long term view. The measures were
introduced as a permanent and structural feature of the Irish mortgage market and the evidence
threshold to justify adjustments to these rules is significant. While the housing shortage is widely
acknowledged, housing shortfall issues must primarily be addressed by other targeted policies.
Those who wish to make submissions of evidence on the impact of the measures can visit
centralbank.ie. The call for evidence will remain open from 15 June to 10 August.
I attach the Household Sections of the MFR (Macro Financial Review) - Brendan
The Central Bank is today publishing details of a call for evidence which will inform the first annual
review of the impact and effectiveness of the mortgage market rules. The analysis in today’s MFR
will prove useful for those wishing to make submissions. We look forward to receiving data-based
and other analytical submissions which will help inform our assessment.
In this context, the MFR notes a marked slowing in house price inflation, and a decline in house price
inflation expectations since introduction of the measures. Although the number of residential
property transactions continued to increase during 2015, activity in the market remains weak. The
report also highlights the scarcity of residential units for sale and rent.
The mortgage rules were enacted in February 2015 to enhance the resilience of households and
banks to financial shocks. We acknowledge that our measures impact individuals’ ability to access
credit and purchase houses. However, these loan-to-value and loan-to-income ratio limits are
designed to protect the system as a whole and limit the risk of a house price – credit cycle emerging
once again. And in this context, we must take a medium to long term view. The measures were
introduced as a permanent and structural feature of the Irish mortgage market and the evidence
threshold to justify adjustments to these rules is significant. While the housing shortage is widely
acknowledged, housing shortfall issues must primarily be addressed by other targeted policies.
Those who wish to make submissions of evidence on the impact of the measures can visit
centralbank.ie. The call for evidence will remain open from 15 June to 10 August.