House prices in Dublin continue to rocket and the hand-wringing about where it will all end has gone up a notch. The question as to whether there really is a problem, given how far house prices have fallen, is still open but the debate about what should be done if there is a problem is well overdue.

The main weapon in the Central Bank's armoury – and house prices are seen as its problem – is the ability to rein in bank lending. The more conventional tool, interest rates, is the preserve of the European Central Bank and it is not worried about Irish property prices.

The Bank of England has already made it clear to banks in the UK that – if the UK market continues its dizzying ascent – it will impose a cap on the size of mortgages people can take out relative to their salaries.

It is not a perfect response, as it still allows cash buyers to drive up prices, but it should at least protect the average buyer from running up unsustainable debts and take some of the heat out of the market.

The idea is borrowed from Canada, where Mark Carney, the Bank of England governor, learned his trade. It is credited with insulating Canada from the worst of the global credit crunch, but it is too early to say whether it will work in the UK.

The Central Bank might consider a similar move, which would at least signal that it is alert to the incipient danger and, this time around, it will not be found asleep at the wheel.