There is good news for those with tracker mortgages. The European Central Bank (ECB) has cut its key interest rate to a new historic low of 0.15%.

The bank is also set to introduce a negative deposit facility rate for the first time. This will see bigger banks charged a fee of 0.1% for leaving their money with the ECB.

Property consultants Savills have welcomed the decision, which they say should help to underpin demand in the residential market.

Dr. John McCartney is an economist and director of research at Savills.

"Cash sales became an increasingly important part of the market in recent years, but this has begun to reverse again over the last 12 months" he said.

"Therefore, the cost and availability of credit will have more of an influence on market dynamics this year as the traditional mortgage-financed buyer comes back to the fore".

But he cautioned that more development of new homes is required to meet increased demand.

"Currently there is a severe shortage of stock in many areas of Dublin and it is to be hoped that today's interest rate cut will add to the supply of development finance and facilitate much needed home-building" he added.

Newstalk's Business Editor Ian Guider told Lunchtime that while those with tracker loans should see the benefit from next month, some banks may put variable rates up.