The rise in house prices, despite stringent new mortgage lending rules, has been attributed to the proportion of ‘corporate’ investment in the Dublin residential property market.
Finance Minister Michael Noonan has admitted that his plans to help first-time house buyers in the Budget does run the risk of increasing house prices.
House prices outside Dublin are rising rapidly as a result of the Central Bank lending rules brought in last year.
There has been a rise of 6.9% in the price of residential properties in the year to the end of May.
Residential property prices in Ireland have increased by an average of 7.4% in the past 12 months, official figures show.