Bernard Durkan (Kildare North, Fine Gael)
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51. To ask the Minister for Finance the extent to which provision might be made to ensure that first time house buyers or those currently without a family home are not priced out of the market by investors; the extent to which provisions already in place to assist the first time buyer remain effective; and if he will make a statement on the matter. [46516/14]

Bernard Durkan (Kildare North, Fine Gael)
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55. To ask the Minister for Finance the extent to which it is expected that the Central Bank of Ireland may regulate the mortgage market in such a way as to facilitate the needs and requirements of first time or homeless home buyers without having to accumulate unreasonable deposits; and if he will make a statement on the matter. [46520/14]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 51 and 55 together.

As the Deputy is aware, the Central Bank of Ireland published a Consultation Paper on 7 October 2014 which includes proposals for new macro-prudential measures to enhance the resilience of the banking sector and households to housing market developments.

The Central Bank measures, as set out in the consultation document, would place restrictions on the loan to value (LTV) and loan to income (LTI) ratios banks can apply when lending for house purchase. They would apply to all mortgage lending in Ireland by regulated firms. The Central Bank has indicated that the primary objective of these measures is to increase the resilience of the banking and household sectors to the property market and to try to reduce the risk of bank credit and housing price spirals from developing in future.

The specific measures proposed for primary dwelling houses are to restrict new lending to a limit of 80% of the value of the property and to a maximum of 3.5 times gross annual income.  It is important to note that the Central Bank has also stated that banks will be able to lend, in some instances, above these threshold limits. However, any lending in excess of the loan to value ratio must be limited to no more than 15% of the value of new loans issued and, in respect of exceeding the loan to income ratio, to no more that 20% of the value of new loans.  Other exemptions will also be available in certain circumstances.

The Central Bank has also outlined measures for buy to let (BTL) mortgages which propose to restrict BTL lending above 70% LTV to no more than 10% of the value of all housing loans for investment purposes. The Central Bank has now commenced a consultation process on the proposed measures and submissions and comments on these can be made to r8th December 2014.

Furthermore, the Deputy will be aware that Budget 2015 contained a number of measures to support a functioning housing market. In particular, in order to support first time buyers to save towards a deposit for their first home, DIRT will be refunded in respect of savings up to a maximum of 20% of the purchase price. This measure will run until the end of 2017.