House price trend moves on up

House prices throughout the Republic continued to rise in the first three months of the year, Irish Life & Permanent said yesterday.

The mortgage lender said general house prices rose by 4.7 per cent in the first quarter, compared with a rise of 3.1 per cent in the same period in 1999.

The figures for the first three months of the year contrasted with those of its competitor, First Active, which said two weeks ago that house prices throughout the State declined by 0.5 per cent in the January-March period.

While First Active said house prices in Dublin declined by 4.6 per cent in the first quarter of the year when compared with the final three months of 1999, Irish Life & Permanent said yesterday that Dublin prices rose by 5.6 per cent in the same period.

Produced in association with the Economic and Social Research Institute, the latest index said house prices throughout the State rose by 19.7 per cent in the 12 months to the end of March.

Prices outside Dublin again increased at a greater rate than within the capital. In the year to the end of March, Irish Life & Permanent said prices rose by 21.4 per cent outside Dublin compared with a 17.5 per cent rise in the capital and in Co Dublin.

A spokeswoman said this trend was attributed to a greater level of building in counties Louth, Meath and Kildare.

It also reflected price increases in Cork, which rose by 8.5 per cent in the first quarter of the year.

Irish Life & Permanent said the average price for a new home of all sizes throughout the State was £119,760 (€152,173) in the first quarter of the year.

For first-time buyers, the comparable price was £101,924.

In this period, the price of new houses throughout the State rose by 4.3 per cent, while second-hand house prices rose by 5.7 per cent.