'People are paying €1,700 and above for two-bed - it's chaos'
The reduction in the deposit requirement for first-time buyers is great news for prospective homeowner Peter Kavanagh.
Reacting to the Central Bank's ruling, Mr Kavanagh (32) says his search for a house will be made much easier.
"It's greatly welcomed, and it's good news for us," he told the Irish Independent. "It means a lot more people can buy homes sooner than they expected to."
Mr Kavanagh, who lives in Clondalkin with his wife Emma, also pointed out the measure could also help ease the capital's ever-competitive rental market.
"It also means that more people will leave the rental market, which will have a knock-on effect on rental prices," he said.
"If you take us out of that market, there will be less pressure on rental housing.
"Anything that alleviates that problem is great."
Mr Kavanagh also called the current rental situation in Dublin "chaos".
"We're renting in Clondalkin, and to be honest we are very lucky. Our landlord isn't out to make money," he said.
"But the majority of people are paying €1,700 and above for a two-bedroom house. It's chaos."
Earlier this year, the couple were left disappointed by the Budget's plan for first-time buyers.
The plan offers first-time buyers a 5pc tax rebate when they purchase a new build.
However, Mr Kavanagh and his wife are looking to buy in Clondalkin in west Dublin, where there are currently no plans for new builds.
They have been saving since they got married for a deposit on a house and hope to buy within the next 12 to 18 months.
"My point of view is that we want to buy a house we can live in," he said. "We don't want a starter home."
Mr Kavanagh realises rules are needed to keep the housing market in check. He added: "I understand the concerns of the Central Bank. I'm glad they kept some restrictions."