Central Bank blamed for dysfunctional house market
A leading developer has warned Ireland's housing market is now totally dysfunctional with the Central Bank having over-corrected since the property crash and ordinary Irish workers being priced out of ever owning their own home.
Michael O'Flynn said that while developers and banks have taken the blame for what happened in Ireland's property crash, he warned the Central Bank also played a role in getting things badly wrong.
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The Cork developer said that the Central Bank, through its determination to over-correct following the 2008-2009 crash, is now effectively punishing young families who should be the bedrock of Ireland's recovering housing market.
"We have a Central Bank that got it very wrong back then. Now to my dismay they are actually saying to the world: 'Stay renting, we actually won't let you buy a house.' I would put it as strong as that," he said.
"The standard couple back in the 1970s could actually afford to buy a house. The standard couple today - and I use the expression 'Garda or nurse' - are struggling to buy a house."