John McGahon (Fine Gael) | Oireachtas source

In the last few weeks, there have been many discussions on the future of banking and housing in Ireland. I wish to raise the issue of the Central Bank of Ireland and the very restrictive rules that it has in respect of lending in comparison to other European countries.

While I accept the independence of the Central Bank, the Government should make it clear that the bank should relax and reduce the lending rules. As legislators, we can act, while at the same time respecting the independence of the Central Bank. There are many people in their late 20s and early 30s who are trying to buy their first home. In Dundalk, for example, they are paying €1,200, €1,300 or €1,400 in rent per month. In Dublin, they are paying much more. How can people be expected to pay that kind of rent and also save the same amount towards a deposit? If the rules were relaxed to allow people to show that they consistently pay €1,100, €1,200, €1,300 and €1,400 in rent, surely that could go towards a deposit. In one of the first Private Members' Bills in the last Dáil, the former Deputy, Noel Rock, proposed legislation in this regard. His legislation would have allowed 70% of rent paid in the previous three years to act as a form of shadow deposit, providing that documentation showed that the tenant had paid rent on time for the last three months. If we were able to do that, it would benefit people trying to get onto the property ladder for the first time. In 2019, the Tánaiste stated: "I do think one aspect of mortgage rules that is very tough is that you are expected to show you are saving at the same time you are renting, but of course if you didn't have to pay a rent of €2,000 a month you would be able to save."

To conclude, I think it is a cop-out to say we are doing everything we can to try to improve the housing situation in this country, but we are not tackling the elephant in the room, namely, the fact that we have the strictest lending laws and rules in the EU. If we are going to stand in this House and talk about solutions to the housing crisis, we must engage with the Central Bank. If an individual in their late 20s or early 30s is consistently paying €1,100, €1,200 or €1,300 a month in rent, surely he or she can pay a mortgage at the same price.