Menu
29/02/2012
LTV Limits On Mortgages May Prevent A Repeat Of Ireland's Housing Bubble
The introduction of loan-to-value (LTV) limits on mortgages might help to prevent a repeat of Ireland's housing bubble, according to new research by the Economic and Social Research Institute (ESRI).
An examination of the international evidence suggests that requiring house buyers to accumulate higher deposits dampens house price growth and also protects the financial system from sharp declines in house prices. The evidence suggests that countries with higher LTV ratios have experienced higher house prices and higher house price volatility.
Although LTV ratios in Ireland have reduced in recent years, this represents a market response to the crisis. The introduction of LTV limits by regulators now would effectively prevent the re-introduction of 100% mortgages when the market picks up.
Referring to the findings, ESRI report author, Dr. David Duffy, said: "We wouldn’t expect such measures to have an impact on the housing market at the moment, because it is very weak. However, this may be the time to put in place the policy framework to help to prevent the reoccurrence of a housing market boom in the future. The experience of Hong Kong shows that LTV limits can be actively adjusted to take account of the property market cycle."
(CD/GK)
An examination of the international evidence suggests that requiring house buyers to accumulate higher deposits dampens house price growth and also protects the financial system from sharp declines in house prices. The evidence suggests that countries with higher LTV ratios have experienced higher house prices and higher house price volatility.
Although LTV ratios in Ireland have reduced in recent years, this represents a market response to the crisis. The introduction of LTV limits by regulators now would effectively prevent the re-introduction of 100% mortgages when the market picks up.
Referring to the findings, ESRI report author, Dr. David Duffy, said: "We wouldn’t expect such measures to have an impact on the housing market at the moment, because it is very weak. However, this may be the time to put in place the policy framework to help to prevent the reoccurrence of a housing market boom in the future. The experience of Hong Kong shows that LTV limits can be actively adjusted to take account of the property market cycle."
(CD/GK)
Related Irish News Stories
Click here for the latest headlines.
30 April 2012
New Research On The Current State On The Irish Housing Market Published
The Central Bank of Ireland today published new economic research, entitled 'Why are Irish house prices still falling?' The Letter begins by assessing the current state of play in the Irish residential property market.
New Research On The Current State On The Irish Housing Market Published
The Central Bank of Ireland today published new economic research, entitled 'Why are Irish house prices still falling?' The Letter begins by assessing the current state of play in the Irish residential property market.
21 April 2010
Three Die In Separate House Fires
Two men and a woman have died in three separate house fires in Limerick and Kerry. In the latest incident, a man in his 60s died following a house fire in Tralee in Co Kerry. The fire broke out in the terraced house in Connolly Park at about 9.30pm yesterday. Gardaí were called to the scene at around 9.
Three Die In Separate House Fires
Two men and a woman have died in three separate house fires in Limerick and Kerry. In the latest incident, a man in his 60s died following a house fire in Tralee in Co Kerry. The fire broke out in the terraced house in Connolly Park at about 9.30pm yesterday. Gardaí were called to the scene at around 9.
23 September 2009
Warm Welcome At Open House
It's festival time up North as Belfast comes alive tonight and into the weekend at the Coors Light Open House Festival. Running until Sunday, 27th September, it is all happening around the city's arts & cultural flavoured Cathedral Quarter.
Warm Welcome At Open House
It's festival time up North as Belfast comes alive tonight and into the weekend at the Coors Light Open House Festival. Running until Sunday, 27th September, it is all happening around the city's arts & cultural flavoured Cathedral Quarter.
30 October 2018
93% Of People Want The Govt To 'Do More' To Tackle Housing Crisis
Approximately 93% of respondents to a housing survey said that they want the government to do more to tackle the housing crisis, including the construction of more social and affordable homes. According to the MyHome.ie Consumer Sentiment Survey, 60% of respondents also expect house prices to rise by 5% or more in the next 12 months.
93% Of People Want The Govt To 'Do More' To Tackle Housing Crisis
Approximately 93% of respondents to a housing survey said that they want the government to do more to tackle the housing crisis, including the construction of more social and affordable homes. According to the MyHome.ie Consumer Sentiment Survey, 60% of respondents also expect house prices to rise by 5% or more in the next 12 months.
-
Ireland WeatherToday:A rather cloudy morning, with a little patchy light rain or drizzle to start. Skies clearing and becoming dry and increasingly sunny in the afternoon. Maximum temperature 13 °C.Tonight:Dry with prolonged clear spells through the evening and overnight. This will allow for some fog patches to develop in places overnight. Minimum temperature 2 °C.
