Opposition parties have rounded on the Government after a house-price survey released today shows a 12.2 per cent rise for the 11 months of the year.
Labour said families, in particular, are being priced out of the housing market because of the Government's repeated failure to control the price of building land.
Fine Gael environment spokesman, Mr Bernard Allen, said prices have trebled since 1997, the year the Fiann Fáil/PD Governmnet took office.
Government policies have worsened the situation through the abolition of the first-time house-buyers' grant and increased VAT rates, Mr Allen said.
"Put together, this means young people have a financial mountain to climb if they want to own their own home," Mr Allen said.
"The Government promised to complete the investigation into land hoarding in the greater Dublin area before the end of 2003; it has not happened," he added.
Labour environment spokesman, Mr Eamon Gilmore, echoed concern on land costs saying the Taoiseach has talked about the problem but the Government has "persistently blocked any attempt to do anything about it."
Mr Gilmore refered to a report by construction economist, Mr Jermome Casey, which showed land was now accounting for 40 to 50 per cent of the cost of a house.
He said the rate of house-price increase when compared to wages rising in line with inflation, meant more families were being excluded from the market.
The average price paid for a house nationally in November was €231,109, the survey found. This was more than three times the price of a house back in March 1996, when the index started. The equivalent price in November 2002 was €203,407.
The ESRI-Permanent TSB monthly index released today suggests the property market is heading for a "soft landing" rather than a dramatic crash as suggested recently by the IMF and the Economist. There are signs of a significant slowdown in 2004, especially in Dublin, it says.
House prices rose nationally by 12.2 per cent in the period between January and November. This compared with 11.9 per cent in the same period during 2002.
During this November prices rose by 1.2 per cent. In September prices were up 0.5 per cent, while in October they jumped by 1.4 per cent. Those who compile the survey said there was some evidence that the rate of price growth was moderating, particularly in Dublin.