Download full report with analyst certification and important disclosures
Jun 1 2022, 07:20 IST/BST
In this report we set out how ECB rate hikes in isolation will likely do little to curb housing demand because the Central Bank of Ireland’s mortgage lending rules have stopped homebuyers from taking on additional leverage. The Central Bank estimated that Irish house prices might have been 25% higher absent the rules. This is because there is appetite from Irish homebuyers to absorb higher levels of mortgage debt and raise income gearing on borrowing.