House price growth at six-year high - survey

Irish house prices have grown at their fastest rate in six years, according to figures released today.

The Permanent Tsb/ESRI house price index shows average prices rose nationally by 5 per cent between January and April, compared to just 1.3 per cent in the same period last year.

The last time prices grew at a faster rate in the first four months of the year was in 2000 when they grew by 6.5 per cent between January and April of that year.

Today's index also shows that between April 2005 and April 2006 the growth in national prices was 13.2 per cent, up on the rate of growth to March 2006 of 12.1 per cent and more than twice the 6.5 per cent rise recorded in the 12 months to April 2005.

The average price paid for a house nationally in April of this year was €291,678, up almost €14,000 on that recorded for December 2005 (€277,852).

House prices grew by 14 per cent and 13 per cent in the 12 months to April 2006 in Dublin and outside Dublin, respectively. The equivalent rates to the end of March 2006 were 13 per cent and 12.2 per cent respectively.

For the first four months of 2006, growth rates for Dublin and outside Dublin were 5.4 per cent and 4.9 per cent, respectively. The equivalent rates last year were 1.8 per cent and 1.4 per cent.

The average price paid for a house in Dublin and outside Dublin in April 2006 was €388,466 and €252,030 respectively.

House prices in the commuter counties near Dublin - Louth, Meath, Kildare and Wicklow - grew by 1.2 per cent in April 2006, compared to 1.6 per cent in March 2006.

House price growth in the commuter counties year-on-year to April 2006 was 13.8 per cent, up slightly from that recorded to March 2006 (13.5 per cent), and more than twice the rate recorded to April 2005 (5.9 per cent).

Growth in the first four months of this year was 6 per cent compared to 2.6 per cent last year. The price of a house in the commuter counties in April 2006 was €316,749, up almost €18,000 from €298,866 in December 2005.