Professor Patrick Honohan:

In the past the volume of additional lending by the banks was seen as something which drove up prices. It did. While I do not dispute the fact that one might imagine a squeeze to drive up property prices temporarily and that the banks might state that while people want property, they will not let builders gain access to credit, this is unlikely to have a long-term effect of the type to which the Deputy referred. I am not sure, therefore, that I buy the story. There may not be that much competition, but there is no collusion either in their reluctance to provide finance for builders.