Brendan Burgess
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By Ciarán Hancock in the Irish Times
http://www.irishtimes.com/business/sectors/financial-services/no-point-building-houses-if-mortgage-rules-are-too-severe-1.1996975
http://www.irishtimes.com/business/sectors/financial-services/no-point-building-houses-if-mortgage-rules-are-too-severe-1.1996975
The new rules are designed to pre-empt another bubble rather than reacting to recent increases in house prices. But they threaten to stymie lending and thus new building activity. There’s no point in building new housing units if citizens are struggling to get a mortgage.
It’s worth noting that mortgage lending this year will total about €3 billion. At its peak in 2006, total mortgage lending was €39.8 billion. Talk of another bubble is premature.