A Fine Gael MEP says the rental market in Ireland does not offer a proper alternative to home ownership for many people.

Brian Hayes is urging the Central Bank not to go ahead with new rules which would see house hunters have to save a 20% deposit before they can be granted a mortgage.

Mr Hayes says expecting people to save 20% of the value of a house is unreasonable:

The proposed new rules were announced in October, and the consultation process closed on December 8th. The limits were originally set to be introduced on January 1st.

The Governor of the Central Bank, Patrick Honohan, has admitted that they are unlikely to come in on that date.

A recent submission from the Department of Finance said that the proposed new rules are too restrictive, and that they would effectively block buyers who are trying to get on the property ladder.

Figures released last week showed that between September and November, an average of 2,752 people were approved for mortgages each month. This represents a 42% increase on the same period last year.

It is believed that the increase in activity is partially due to the Central Bank's proposed restrictions.