A decision to ease deposit rules for First Time Buyers (FTB) has been welcomed by the Society of Chartered Surveyors Ireland (SCSI).

The Central Bank will remove the €220,000 cap on mortgage lending for FTB's who have a deposit of 10%.

Ronan O'Hara, Chairman of the SCSI's Residential Professional Group, said the move "will give confidence to the market" and encourage more builders to begin developments.

However, he added more needs to be down on the supply side of the market.

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"This is a well-considered move by the Central Bank and the focus on first time buyers is welcome, particularly in Dublin and other cities," he said.

"The retention of the Loan to Income ratios will hopefully help to curb price increases.

"Buyers can now focus on buying sooner and in locations where they have family support.  This is also good news for vendors in the second hand market as first-time buyers are not limited to the new homes sector.

"Help to buy schemes or changing mortgage rules will have little impact overall on the housing crisis because supply is the problem, not demand. Reducing or even eliminating VAT on affordable housing and establishing a Development Finance Agency with expertise in construction lending would ensure the houses that first time buyers so badly need are built in a short time frame."

(LM/MH)