Irish house price growth jumps to almost 9% amid second-hand home shortage

Irish house price inflation jumped closer to 9 per cent in June amid a shortage of second-hand properties for sale across the market.

The latest residential property price index, compiled by the Central Statistics Office (CSO), indicates that house prices rose by 8.6 per cent in the 12 months to the end of June, up from 8.2 per cent in May.

The figures show property prices in Dublin rose at an even higher rate than the national average, up 9.3 per cent in June from 8.2 per cent in May.

House prices outside Dublin jumped by 8.2 per cent over 12 months.

Trevor Grant, chairperson of Irish Mortgage Advisors, said many prospective first-time buyers will continue to see their chances of buying a home slip away from them.

"The shortage of new homes available to private buyers means many first-time buyers are bidding against trader-uppers/movers, which in turn is driving up second-hand prices," he said.

"The mismatch between housing supply and demand is one of the main reasons for the continued house price growth.

"The ESRI recently estimated that up to 53,000 new homes are needed in Ireland per year to cater for population growth.

"Current Government house building targets are well below that, though Taoiseach Simon Harris has suggested that more realistic and ambitious housing targets will be set in the Budget this October.

"It is imperative that any such targets are delivered on. While housing commencements are at record levels this year, we are simply not building enough properties quickly enough."