House price increases slow across Ireland

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The rate of house price inflation continues to slow down and is likely to stabilise at about 5% by the end of this year and through 2016, according to the latest survey by property website Myhome.ie and Davy.

The survey found that the asking price by sellers of houses actually fell marginally in Dublin by 0.1% during the third quarter of the year, this is the first decline that the site has recorded in the capital in three years.

The percentage change year-on-year is now 4.8% in the Dublin region and 6% nationally - the average asking price for recently-listed houses for sale in Dublin is now €312,000 and €217,000 nationally.

The Central Bank's mortgage lending restrictions are pointed to as one of the factors bringing house inflation down from its 20% plus levels recorded last summer, as well as the 45% increase in houses available in the Dublin region.

The report also added that tax cuts and increases in wages will contribute to a further 5% rise in house prices during 2016.

Author of the report, Conall MacCoille, chief economist at Davy spoke to Newstalk.com:

MacCoille said: "The Central Bank’s new lending rules have prevented first time buyers in Dublin from taking out ever higher mortgages – the 20%+ rates of inflation of the Summer of 2014 were simply not sustainable – and this is a positive."

"The fact that the number of properties available for sale in Dublin is up 45% to 5,200 compared to this time last year, has also acted as a further brake on price growth."

CSO figures

Seperately, new figures issued by the Central Statistics Office this morning show residential property prices rose by 2.3% last month and were 9.5% higher on an annual basis.

In Dublin, the price of homes increased by slightly more than average, at 2.8%.

Prices in the capital last month were 8.2% higher than in August 2014.

Outside of Dublin, property prices rose by 1.9% - but were 10.8% higher compared to the same time last year.

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