Sir, – The negative reaction to the Central Bank’s mortgage proposals reminds me of the observation, “We learn from history that we do not learn from history”.
House buyers will almost invariably bid the maximum amount they can get their hands on – a reduction in credit will therefore reduce the maximum price that will be bid by the typical buyer and therefore reduce prices generally as prices are always set at the margin.
While there is much to be said for assisting young people, this must be done via supply of houses for rent and purchase and by disincentivising landlords from crowding out first-time buyers from the market. More fuel on the fire is not needed, and the Central Bank is to be commended for looking out for the greater good. – Yours, etc,
MATTHEW GLOVER,
Lucan,
Co Dublin.