House price inflation levels have reached a ten-year-high

HOUSE PRICE INFLATION has reached a ten-year-high, according to the latest report from property website Daft.

Prices increased nationally by 3% during the second quarter of this year, with the typically listed property cost reaching €357,851.

They are almost 13% higher than last year and 40% higher than pre-covid levels.

As has been the case for successive reports from Daft, low residential supply and a lag in the housing pipeline is attributed to the increasing inflation rates.

Surges in prices are no longer confined to the capital either, with the Dublin figure of 12.3% being largely in line with the rest of the country.

The largest increase in house prices was seen in Waterford City, which are up by 15.2%.

The highest prices were seen in Dublin, where the average listing price was up by 12.3% at €467,913.

The capital was followed by:

• Cork City, with house prices listed at €369,938 (+8.6%)
• Limerick City, with house prices listed at €311,086 (+12.8%)
• Galway City, with house prices listed at €426,348 (+12.5%)
• Waterford City, with house prices listed at €276,420 (+15.2%)
• Rest of the Country, house prices listed at €309,954 (+12.5%)

A lack of listings for previously-owned homes is also a contributing factor to higher prices for new and existing properties, the report said.

The number of second-hand home for sale on 1 June was close to 12,100, less than half of what was seen before 2020.

Author Ronan Lyons said slight increases in listings in the second-hand market have been recorded in Dublin, but not enough to meet demand.

He added that that market is only “part of the solution”.

Lyons said: “Ultimately, policymakers have to address their failure to recognise and provide the framework for enough new homes each year.”

All available statistics published by independent bodies so far this year indicate that the government will once again fall short of its housing targets for 2025.

Government hopes that investment will increase for new builds alongside a recent change to the rental sector regulations, which will allow for landlords to increase the cost of rent to market rates for new tenants every six years from next March.

Journal Media Ltd has shareholders in common with Daft.ie publisher Distilled Media Group.