Taoiseach Enda Kenny has welcomed the relaxation in the mortgage rules announced by the Central Bank today, writes Daniel McConnell of the Irish Examiner.

“The decision of the Central Bank is to be welcomed here. Obviously they have put in conditions in respect of second and subsequent buyers. The Government’s programme of €5bn worth of investment through the five pillars is very important,” he told reporters.

“So I welcome the decision of the Central Bank, obviously they have made it clear they will continue to monitor these conditions very carefully in the hope they level the opportunity to enable people to get on the property ladder without going over a cliff,” the Taoiseach said.

Meanwhile, the The Minister for Finance, Michael Noonan said the updated rules should enable all of those borrowing to purchase a home to find it easier to source a mortgage that suits their needs.

Mr Noonan in particular welcomed the abolition of the €220,000 loan-to-value threshold limit for First-Time Buyers.

The change in the prudential rules, together with the Help-To-Buy scheme announced by the Minister for Finance in the Budget, will be of great help to first-time buyers.

"These two measures, which reinforce each other, will have a significant impact on the capability of first-time buyers to fund their first family home," a departmental spokesman said.