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Moody's confident of house price pick-up

Moody's confident of house price pick-up

David Chance
January 21 2020 2:30 AM




The inclusion of buy-to-let loans, higher loan-to-value re-performing loans and fixed-rate mortgages is set to push the quality of residential mortgage bonds lower, according to Moody's. 
The credit rating agency said in a report yesterday that the economy overall would continue to grow strongly at 3.2pc this year. It predicted a pick-up in house price inflation, which it said would rise to 4.5pc this year, from 3.9pc in 2019.

"In Dublin, house price increases will be stifled by the Central Bank's macro-prudential regulation measures, most notably the loan-to-income limits for new mortgage lending," the agency said.

While the credit outlook for banks here will remain stable, margins will come under pressure, Moody's said.

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