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New mortgage lending rules have worked says Central Bank

Written by Robert McHugh, on 15th Oct 2015. Posted in Ireland

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The Deputy Governor of the Central Bank of Ireland, Stefan Gerlach, has claimed that macro-prudential policies introduced by the Bank had worked ‘by reducing the speculative element of housing dynamics’.

Mr Gerlach stressed, however, that it was too early at this stage to assess their impact on lending as the Bank did not have any firm data.

He made these statements at the Society of Chartered Surveyors Ireland annual conference in Dublin.
 
The President of the Society of Chartered Surveyors Ireland, Andrew Nugent, also addressed the conference. He described the Government’s failure to introduce direct measures to improve the housing supply as both puzzling and disappointing.
 
Nugent said, "At this stage everyone is aware that the problem in housing is on the supply side. Whilst we acknowledge and welcome the role of NAMA in delivering houses, 20,000 units over the next five years is simply not enough.

"We need that level of volume each year, whilst we also need measures to rejuvenate the main streets of towns around the country.”

"We advocated a range of short to medium term measures to improve viability such as a temporary reduction in VAT, reduced development levies, increased site infrastructure investment and harmonisation of national design standards to our urban areas. We also proposed that a new Housing Authority – akin to the National Roads Authority - be created, charged with the delivery of housing units."

"We strongly believe that if these measures are not introduced promptly price volatility, rent hikes and the pressures we are seeing now on social housing will intensify for the foreseeable future."
 
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