House prices rose by 1.1 per cent in January, a slowdown from December's 2.1 per cent rate of increase, according to the latest edition of the Irish Permanent house price index.

In the 12 months to January, house prices nationally were up by 20.6 per cent as the annual growth rate again slowed from the 21.3 per cent figure recorded in the year to December.

The index, compiled in association with the Economic and Social Research Institute, found the average price paid by a first time buyer in January 2001 was £121,238, compared to £99,219 a year earlier.

House prices in Dublin rose by 1 per cent in January compared with a 1.2 per cent increase in December. Outside Dublin city and county, prices were up by 1.1 per cent after increasing by 2.4 per cent a month earlier.

Irish Permanent also found house prices for first-time buyers rose by 0.4 per cent last month, after increasing by 1.7 per cent in December, while second-time buyers faced a price increase of 1.7 per cent, down from 2.6 per cent.