Terence Flanagan (Dublin North East, Independent)
Link to this: Individually | In context | Oireachtas source

77. To ask the Minister for Finance his views on house prices in Dublin and the new mortgage rules introduced by the Central Bank of Ireland recently; and if he will make a statement on the matter. [8706/15]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am aware of recent price dynamics in the residential property prices in Dublin, which according to the CSO, have risen by 22 per cent in the 12 months to December 2014. However, in the last two months there are tentative indications of a moderation in price growth in Dublin; the monthly rate of property price growth was -0.1 per cent in November and was 0.3 per cent in December. This compares to an average monthly growth rate of close to 3 per cent in the six months prior to November 2014.

The Government recognises that the main driver of house price growth in Dublin is a shortage in the supply of housing to meet growing demand. Under Construction 2020 Strategy: A Strategy for A Renewed Construction Sector, the Government has set out its strategy to address the issues that are impeding a fully functioning construction and property market. My Department along with other relevant Departments and bodies, is involved in a range of actions as part of the Strategy which addresses among other issues housing supply, planning issues, sustainable development financing, sustainable mortgage lending, as well as addressing legacy issues associated with the property bubble.

The recently introduced macro prudential residential mortgage lending rules by the Central Bank are one of a number of instruments at the Central Bank's disposal to strengthen the resilience of the banking system and the household sector against sudden house price changes. To extent that the new regulations contribute to sustainable mortgage credit lending and affect buyers' price expectations, this may to contribute to a lowering of the current growth rate of property prices in Dublin.