House prices rose at a slower pace in the second quarter than the first, an indication that a soft landing may be in sight for the Irish property market, a report by the property website Daft.ie showed.

Annual house price growth slowed from 14 per cent in April to 6.2 per cent in July, according to the report released yesterday. Moreover, buy-to-let investment yields have fallen to an historic low, with average yields now at 3.27 per cent.

According to Daft's report, which bases its findings on properties advertised on its own website and excludes homes being marketed by agents including Sherry Fitzgerald, Gunne and Douglas Newman Good, the best place to rent out a property is Limerick, where the average yield on a buy-to-let home is 4.07 per cent.

Daft director Eamonn Fallon said the market is continuing to experience considerable geographical differences.

The average price of a property in Dublin now stands at €483,000.