The Finance Minister Michael Noonan has indicated he'd like to see a review of the Central Bank's mortgage caps for first-time buyers.

In an interview with the Irish Times, Mr Noonan says there is a shortage of starter homes in Dublin and builders believe the regulations by the bank are too restrictive.

He says market conditions are changing and he is being told by the construction industry that aspects of it are inhibiting starter homes.

"What I'm saying is that the market conditions are changing rapidly and there are aspects of it now which, according to the construction industry, are inhibiting starter homes," he said.

Mr Noonan has called on the Central Bank to review the mortgage caps for first-time buyers - which were introduced eight months ago but says he will accept whatever conclusion the bank comes to.

"All I'm saying is for the bank to review. If the bank says we're not changing anything then of course I'll accept that," he said.

Marian Finnegan is chief economist with Sherry Fitzgerald. She told Newstalk Breakfast there are several areas preventing new construction.