Sir, – Within days of a meeting with Tom Parlon and other representatives of the Construction Industry Federation, the Minister for Finance makes it explicitly clear to the next governor of the Central Bank that he would like first-time buyers to be able to borrow more money than the current rules permit. He does so in a week when figures show that Ireland’s property prices are rising faster than almost anywhere else on the planet.
The inevitable consequence of raising the borrowing limits is higher house prices. It is obvious that those with a vested interest in exorbitant prices are once again the largest influence on housing “policy”. First-time buyers beware – the Government, despite any rhetoric to the contrary, aims to ensure that you will pay even more for a place to live. – Yours, etc,
BILL CALLAGHAN,
Clontarf,
Dublin 3.
Sir, –The Central Bank introduced regulations, commonplace elsewhere in Europe, to ensure an orderly residential property market over the economic cycle.
Encouraging first-time buyers to enter into loans that they may eventually have difficulty servicing is most unwise. Another economic downturn or a future rise in interest rates could do just that.
The Minister should realise that there can be snakes as well as ladders in the property market. – Yours, etc,
TIM McCORMICK,
Dublin 6.