The Central Bank says mortgage lending rules do not need to be changed.

Restrictions on lending were brought in back in 2015 in order to avoid a repeat of the property crash.

First-time buyers must have a down payment of at least 10%, with 20% needed by other borrowers.

An annual review by the Central Bank finds the rules do not appear to be the most prominent driving factor in house price developments.

According to the regulator, increasing supply will moderate price growth and there is currently "little evidence of a bank credit-house price spiral emerging".

Governor Philip Lane explained: "Our review shows that, while the pace of growth in the new mortgage lending is strong, there has been little change in average [loan to income (LTI) and loan to value (LTV) limits] and no sign of a generalised deterioration in lending standards. On the basis of these findings, no change is required to the current framework.

"While the level of house prices and rents, particularly in urban areas, pose serious affordability concerns, a sustained and substantial expansion in housing supply is the fundamental solution: a fully functioning and sustainable housing market is not achieved by tolerating imprudent lending standards by banks or excessive borrowing by households."

The regulator adds that it will continue to monitor developments.