Sir, – I’ve yet to hear how the Central Bank proposes to protect the thousands of prospective house buyers who will be forced into long-term rental as a result of its badly thought-out restrictions. What will happen to people is that they will end up paying rents at levels similar to mortgage payments but without accruing any equity in an asset. What happens if one cannot pay rent due to illness or unemployment? You end up on the street with nothing to show for all the years of rent paid.
Contrast this with a homebuyer who can’t pay the mortgage but who at least could have some equity built up in their property even if they ultimately end up on the street.
Surely having something to show for years of paying rent such as equity in a tangible asset is preferable to having nothing. – Yours, etc,
FRANK SMYTH,
Dalkey, Co Dublin.
Sir, – The concerted campaign led by those with a clear vested interest in high house prices against the eminently sensible Central Bank proposal to introduce a meaningful limit on how much people can borrow for their mortgage has been extraordinary to witness ("New mortgage rules 'will confine house purchases to the rich', says Siptu chief", January 20th).
A few short years after a property crash of epic proportions, these vested interests have managed – cheered on by the media – to turn a proposal that should reduce house prices and prevent people from falling into unsustainable debt into a bogus story about the poor first-time buyer unable to clamber on to the all-important property “ladder”. That even trade unions are blind to the fact that more credit will mean even higher prices is deeply dispiriting.
One can only hope that Patrick Honohan uses this moment to prove his independence and, once again, do Ireland some service. – Yours, etc,
BILL CALLAGHAN,
Clontarf,
Dublin 3.