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Ask the experts

How is the Central Bank's proposal for a 20pc deposit for all property purchases affecting the market? What will happen if it is enforced?

keith lowe

Douglas Newman Good

Buyers are sitting on the fence to see if the proposals are enacted or not, and if they are, what format will they take - or whether they will be amended.

Introducing the current proposed measures will have a negative impact on the market, resulting in many first-time buyers being left in rental accommodation for an extended period of time - as long as five to 10 years.

The impact could also lead to a reduced number of new homes being built. Rents would likely rise sharply. Rural areas will be hit hardest by this measure as the level of house sales regionally can be quite low with a high dependency on first-time buyers.


Felicity Fox

From the moment the Central Bank proposals were mooted, confusion entered the marketplace. A lot of prospective buyers who had the required 20pc asked the question: "Are we better to hold off until next year as there maybe fewer buyers around to compete?"

We have found the majority of buyers have at least 20pc and many have much more. Purchasers today are reluctant to over extend themselves. The 3.5 your salary multiplier could most certainly dampen prices.



Purchasers who are lucky enough to be able to pay the proposed new level of deposit are now waiting to see what will happen and those who don't are trying to get loan approvals to purchase before their existing approval runs out.

There is not a 'real' property market at the moment with city prices rising due to a lack of supply and country properties selling well below cost. If the CBI interferes with this delicate market I believe they will cause serious damage to confidence which is one of the main drivers of activity.

Irish Independent