Ask the Experts: How have the Central Bank lending controls impacted on the market?
The Central Bank lending control measures have assisted in tempering house prices in the capital - already levelling out at the time of their imposition.
They also put further pressure on the rental sector as many buyers now have to stay in rental accommodation longer to save deposits. Outside Dublin the rules have had little effect.
Keith Lowe is CEO of Douglas Newman Good, which has 75 offices throughout the country. He has 32 years experience in the property sector having joined the firm in 1984.
The measures have had a negative impact on supply. Developers are fearful that first-time buyers will not be in a position to purchase new homes at viable price levels and therefore holding off building.
This has in turn impacted the rental market, with individuals having to rent for longer. Following strong price increases in Dublin throughout 2013 and 2014, prices had begun to stabilise prior to the introduction of the new rules.
The new rules expedited this stabilisation process. The outlook for the coming year is that prices will remain relatively flat.
Marian McQuillan is the CEO of Quillsen, formerly Gunne Estate Agents and was previously a director of Purcell McQuillan Tax Partners.
They have acknowledged the independence of the Central Bank and they have shown the huge difference in price that has arisen between the cost of a new build house and a second hand one, which raises the question: who is making all the money from the new builds?
They have also left first time buyers renting for longer trying to save a deposit, hence leaving a shortage of rental properties and thus putting upward pressure on rents.
Pat Davitt is the CEO of the Institute of Professional Auctioneers and Valuers (IPAV). Pat has more than 33 years experience in the sector, spending much of it running a family based auctioneering firm in Mullingar.
The second-time buyer is potentially being excluded from the housing market as a consequence of the measures.
We propose that the price ceiling for first-time buyers should be extended to €330,000 - in line with average Dublin values and that second-time buyers should be assisted by allowing them borrow 90pc up to €220,000 as the current requirements are too prohibitive.
For first-time buyers, lack of supply due to the inability of second-time buyers to move and increasing rents have created a perfect storm which has put property ownership beyond reach.
Darina Collins is a director of and a founding member of the Real Estate Alliance, a partnership of more than 50 auctioneering firms. She is also a partner in REA O'Brien Collins, the Drogheda based general practice firm.