House prices have risen by average of 6.3% in 2016, new report shows

Prices in Dublin are said to be reasonably stable, but prices outside the capital are rising rapidly

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House prices outside the capital are rising rapidly as a result of the Central Bank lending rules requiring bigger mortgage deposits. 

According to the latest Daft report, prices in commuter counties and beyond have risen by more than 10% in the year to June 2016.

Nationally, house prices rose by an average of 6.3%.

Prices have remained relatively stable in Dublin, with a rise of only 1.1% over the last 12 months. However, prices in the capital have risen by an average of 42% from their lowest point in mid-2012.

The latest report shows the national average asking price for a house is €215,000, while in Dublin it is more than €314,000.

Although the Dublin prices remain relatively stable, other cities have seen significant jumps compared to last year - including a 17.4% increase in Waterford, 15.2% in Limerick and 14% in Galway. 

Daft economist Ronan Lyons says people are looking for cheaper places to buy.

"We might actually see more demand for Irish property over the next couple of years," he observed.

"[That's] either because Irish thirty-somethings and others might decide to leave London or the UK and come back home, or alternatively because some of the, in particular, financial services jobs that are in London that may move to Dublin or other cities."