Looser lending rules are not driving up house prices, Central Bank says

The Central Bank's financial stability committee has determined that the recent price inflation in the property market is not driven by new mortgage lending, as initially suggested. Instead, the committee attributes this inflation to a significant housing supply shortage and the strong growth in incomes that have come into play.

In light of the conclusions reached, the committee has advised against any reconsideration of the rule that permits buyers to borrow up to four times their income, emphasizing that this strategy has not contributed to the ongoing inflation in real estate prices.

Read at Independent