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No relief for buyers as house prices rise by almost 12pc in a year

There has been no let-up in the rise in property prices.

New figures from the Central Statistics Office show that prices rose 11.6pc ­nationally in the year to November. Dublin prices were up 11.3pc.

For the month of November alone, prices grew by 1.1pc, a slight easing off in the rate of increase from the two previous months. Outside the capital, prices were up 11.7pc in the year to November.

The midwest showed the least price growth, at 8.9pc.

The new numbers mean prices nationally have now risen by nearly 71.6pc since the bottom of the market in early 2013.

Overall, the national index is 23pc lower than peak in 2007.

The average price of a house rose by €22,700 in a year, up to €270,100 in November.

The capital had the highest prices as the median, or middle, in Dublin was €345,000. Dún Laoghaire-Rathdown had the highest median price of €520,000, while Fingal had the lowest at €310,274.

Outside Dublin, the highest median prices were seen in Wicklow at €300,000 and Kildare at €270,000. Lowest prices were in Longford at €84,500 and Roscommon at €87,500.

Economists say they expect the tightening of the Central Bank mortgage lending rules to slow the market this year.
The CSO figures show 4,224 properties were bought in November, up 250 from the same month last year. The total value of transactions was €1.18bn.

But prices should continue to rise until the new measures take effect, economist Alan McQuaid of Merrion Stockbrokers said.

“As we wait for the measures to come through, prices will continue to rise,” he said.

The biggest increase is likely to be outside the capital, with the asking price in more expensive areas rising at a slower rate.

Mr McQuaid said changes to Central Bank rules mean that in more expensive areas, the trend of increasing house prices will not be as pronounced.

Previously, up to a fifth of all buyers could get an exemption from the rule that restricted them to borrowing three-and-a-half times their income.

Only 10pc of those trading up are now allowed to do so. The allocation remains unchanged for first-time buyers.

Mr McQuaid said Dublin prices will be out of reach for more borrowers, while in other areas where buyers will not need to borrow as much, prices will see stronger growth.

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