Increases to the local property tax will be moderate and affordable, according to Finance Minister Paschal Donohoe.

Current LPT prices are based on May 2013 estimates.

This valuation applies to properties for a seven year period - up to and including 2019.

However, this is set to be updated to reflect more recent evaluations.

The next valuation date will be on November 1st this year.

It comes as Culture Minister Josepha Madigan wants lower rates of property tax in affluent areas.

"I would like to see a lower rate in areas with the highest house prices. Residents of south Dublin, for example, should be entitled to reliefs as they could be most affected," she said.

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Minister Donohoe has said he is examining the options available.

"I am well aware of the very significant affect that higher house values could have on future Local Property Tax liability.

"I also know - and it's obvious - that while people's incomes have grown, they clearly have not grown in line with the growth in house prices.

"So any changes that happen on the Local Property Tax they will be moderate, they will be understandable and they will be affordable".

He has said decisions will be made later in the year.

"These are bills that are due to come in one year's time.

"And I understand exactly the anxiety that people will have about these bills if they were to become clear towards the end of this year, and were due to be paid early next year.

"And that is why I'll work to bring proposals to Government that bring this kind of clarity to it".

Additional reporting: Jack Quann