House price inflation jumps to almost 8% amid lack of supply

House prices have risen at their fastest rate since November 2022.

Figures from the Central Statistics Office show the cost of a home across the country increased by 7.9 per cent in the 12 months to April, up from 7.4 per cent in the year to March.

The price of a residential property in Dublin went up by 8.3 per cent, while outside the capital the cost was 7.6 per cent higher in the year to April.

The median house price in that period was €335,000.

Trevor Grant, chairperson of Irish Mortgage Advisors, said the figures show that house price growth continues to power ahead.

"While on the one hand, housing supply is increasing, meaning more opportunities for buyers, the flipside is that so too are prices, so many homebuyers, particularly first-time buyers who make up the largest cohort of buyers, will be disappointed that house price inflation is not softening."

Joey Sheahan, head of credit at online brokers MyMortgages.ie, said the further increase will not be welcome news to first-time buyers.

"Our experience is that most people looking to buy are not currently holding out for any fall in prices – because it doesn’t look likely that this will happen any time soon. If anything, prospective homebuyers are being proactive – getting all their paperwork ready for their mortgage application and doing the leg work to find a home. It is a very active market."