The rise in house prices has continued to moderate, with prices rising by 1.2 per cent in October, compared to a 1.3 per cent monthly rise in September, according to the Irish Permanent index.

It shows that, over the first 10 months of the year, house prices rose by 14.2 per cent compared to 25.2 per cent over the same period last year. The year on year increase is also moderating, with an increase of 18.4 per cent for the 12 months to October, compared to 18.8 per cent for the year to September.

For the second month in succession, the year-on-year increase in prices was higher outside Dublin than in the capital, with prices rising by 0.4 per cent in Dublin compared to 1.5 per cent outside the city.

Prices outside the capital rose by 19.5 per cent in the year to October 1999, compared to an increase of 16.9 per cent in Dublin for the same period.

The average price paid by a first-time buyer in October 1999 was £95,054 compared to £80,339 for the same month in 1998 and an average price of £63,838 in October 1997.

Between September and October prices nationally increased by 1.6 per cent for first-time buyers and by 1 per cent for second-time buyers. In the year to October, prices for first-time buyers have grown by 18.3 per cent compared to an increase of 19.2 per cent for second-time buyers.