Minister for Public Expenditure and Reform Brendan Howlin has welcomed new Central Bank mortgage restrictions to prevent another housing bubble.

Speaking on his way into Cabinet, Mr Howlin praised Central Bank governor Patrick Honohan for being "proactive" in seeking to ensure the mistakes of the boom time in the housing sector were not repeated.

“What’s at stake is simple prudence... just going back to old-fashioned basic rules,” Mr Howlin said.

He said he welcomed the fact the Central Bank was “assertive” and “independent” in doing “whatever needs to be done to prevent another bubble”.

Consumers will face new restrictions in January on the amount of money they can borrow to buy a house or apartment as the Central Bank moves to damp down the property market.