The Central Bank has confirmed that first-time buyers will be required to provide a 10% deposit when buying their first home.

Fine Gael TD for Carlow/Kilkenny, Pat Deering, said the announcement is a "common sense" approach to the issue of mortgage deposits.

Mr Deering said: "The rumours of 20% deposits for everyone had a lot of first time buyers very worried, but this shows a real common sense approach.

"There is a conflict between keeping rental and purchase prices under control. Favouring one in particular affects the other and it is important to ensure balance across the housing market.

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"The new rules will mean that first time buyers will have to provide very reasonable 10% deposit for a house, valued up to €220,000. While a 20% deposit will be required for any amount above this price, or for non-first time buyers, it is important to note that anyone in negative equity will fall into this category.

"The new Central Bank rules will help prevent us returning to the crazy unsustainable lending of the Celtic Tiger era. A good example is the fact that the Central Bank is retaining the 70% loan to value limit for buy-to-let loans. Nobody wants to go back to those days and risk another property bubble and destructive economic crash."

(CD/JP)