House prices are too high, according to the EBS Building Society. Announcing cuts in its range of fixed rate loans, Mr Martin Walsh, the society's head of lending said recent indications that house prices are moderating are at best tentative.

The society now offers a one year fixed rate of 4.5 per cent, or 4 per cent for new customers.

Three year funds are now 4.75 per cent rising to 5 per cent for five year and 5.75 per cent for a 10-year fixed rate loan.