Banks may still exceed the 350 percent lending limit for 20 percent of first-time buyer loans, but an exemption for loans to other buyers will be cut from 20 percent to 10 percent from January, the central bank said in a statement.

While Irish house prices are almost a quarter below a 2008 peak, they are now growing at an annual rate of over 10 percent.

(Reporting by Conor Humphries; Editing by Hugh Lawson)