The final decision on whether or not home buyers should be required to save a deposit of 20 per cent towards their property purchase is up to the Central Bank, Brendan Howlin, Minister for Public Expenditure and Reform said Tuesday morning, ahead of the publication this week of the Central Bank's new rules on mortgage lending.

Speaking ahead of the cabinet meeting, Mr Howlin said that the regulator is “independent” in its decision making, and that it is a matter for the Central Bank to make the decision about what is “the most prudent decision” for the Irish economy and lending policy.

“We are now trying to rebuild a property market,” Mr Howlin said, adding that Ireland needs “ robust lending patterns that will allow realistic lending”. However, Mr Howlin added that the Government has its own “strong views” on this.

Indeed Minister for Finance Michael Noonan has previously called on the Central Bank to soften its proposals, while in its submission to the Central Bank, the Department of Finance said that requiring first-time buyers to come up with a deposit of 20 per cent to purchase their first home is "unduly restrictive" and may make it impossible for many to secure a mortgage.

It’s understood that the new rules, which are aimed at preventing another property bubble, will be announced either on Wednesday or Thursday of this week. The rules will be discussed at the Central Bank commission’s monthly meeting today, Tuesday.

Last week governor of the Central Bank Patrick Honohan insisted that his original view would prevail, but there has been speculation that the proposals, which include requiring banks to lend at a higher LTV of 80 per cent for no more than 15 per cent of its mortgage book, may be watered down. This could see the introduction of a minimum deposit of 15 per cent in the short-term, increasing gradually to 20 per cent over a number of years.