Despite the surge in house prices, Irish Permanent says the size of the average mortgage has remained relatively static, with parents and other relatives increasingly matching the shortfall for new home owners.

The institution, which lends more than 20 per cent of all mortgages in the Irish market, states that its average mortgage to a first-time buyer is for £58,000, rising to £67,000 in the Dublin region. Its house price index confirms the rapid rise in house prices nationally and particularly in the Dublin area, where it is virtually impossible to buy a house or apartment for less than £100,000. Mr Douglas said, in most cases, first-time buyers will be able to call on relatives to make up the extra money needed to fund their home. In some circumstances, the parents may remortgage their home with others passing on savings and other financial largesse, which would traditionally have formed part of an inheritance. Another trend is for a group of family members or friends to come together to buy property. According to the Irish Permanent, 80 per cent of all applications are from couples or groups such as this, with relatively few single people able to afford to purchase a home on their own.

Home owners trading up to a second property will on average have a mortgage of around £50,000, while again in Dublin it increases to £60,000, according to Irish Permanent.