Gerard Craughwell (Independent) | Oireachtas source

I welcome the witnesses. I have been thinking about average Joe Garda married to, or in some sort of relationship with, average Jo nurse who buy a house. At the mid-point on the scale their maximum borrowing capacity is €300,000, working on the basis of a 20% deposit requirement, which I support. It is a way of cooling the market.

I am running a survey around the country of all county councillors. So far, the figures suggest we should consider a 10% deposit with a maximum of 3.5 times loan to income. If I were living in Mayo I might be able to buy a house. If I were living anywhere on the east coast, and certainly in the greater Dublin area, I cannot see how I could even buy an apartment. I spent last night debating this with my son and I see no insurance scheme that will allow me to purchase a property unless we come up with a way whereby the banks take equity in the house and release that over the lifetime of the mortgage. I do not believe our balance sheets are strong enough to take on equity in houses and I am sure there would be issues of fairness.

I cannot understand how on one street in any part of Dublin house A sells for €400,000 and the bank puts a certain loan to value figure on that but a month later house B two doors down sells for €450,000 and the bank lends the additional amount on that house. Deputy Mathews’ suggestion of the rental value being the-----