I would be worried that rents will shoot up

[Bronte]

I'd be worried though about Dublin rents, nothing in what the central bank has done solves the supply issue and that's a very very worrying problem.

 

[Brendan Burgess]

Alan Ahearne has claimed that if the proposals lead to reductions in house prices, rents will fall.

Angela Keegan of Myhome.ie also expresses concern for renters. “There are 25,000 households formed each year, and that won’t change no matter what the Central Bank does. People will still want to start out on their own, either as individuals or as couples. If fewer people can buy, the only alternative is renting, and with a limited number of rental properties available that market will spiral and push more people on to social-housing lists,” she says.

Alan Ahearne does not buy the line that the rules would do lasting damage to the rental sector. “These sorts of restrictions will put downward pressure on house prices, and ultimately rents are linked to house prices,” he says.
“In cities such as London, where rents are very high, so too are property prices, and in countries where rents are low, property prices are low. There is always a relationship between yields and house prices, and I don’t think that the Central Bank proposals will lead to ever-increasing rents.”

 

[moneybox]

Alan Ahearn is right, In London property prices and rent prices are excessively high. However young people for some years now are having to stump up in excess of £60K for a house deposit but it has made little difference on reducing house prices or rents rather they continue to spiral upwards. So I can't see how Dublin will be any different.

 

[amgd28]

Alan Ahearne seems to be suggesting that rents chase house prices and not the other way around. Houses aren't a typical commodity and the logic he is applying is lazy economics 101.
If we do speak of fundamentals then if there is a large demand for rental housing and a large section cannot offset that demand by purchasing to live due to credit constraints, then the rental yields will be of attractive enough to draw a greater proportion of investors in. As supply is not really dealt with it seems to me that rents will thus increase and prices will chase that increase.