The Taoiseach has come out against a dramatic rise in property tax.

Rates are expected to go up in line with soaring house prices – especially in urban areas.

It emerged yesterday that the average price of a semi-detached house is rising by €500 every week.

Speaking at Downing Street in London yesterday, the Taoiseach vowed to do “might and main” to avoid any sudden hike in rates as a result of spiralling valuations.

Property tax is calculated based on the value of a property with homes valued at between €300,000 to €350,000 liable for an annual rate of €585 and homes worth between €400,000 and €450,000 liable for a charge of €765.

Local councils have the power to vary property tax up or down by 15% every year.

While many councils have said they would like to reduce the amount paid by homeowners – they have warned that the income is essential in order to provide local services.

Meanwhile, the cost of renting in some Dublin suburbs is now double the cost of a mortgage.