New figures reveal house price inflation accelerating sharply

House prices in the South East of the country increased by over 18% in the year to May.

The region saw the greatest house growth according to the latest CSO figures.

The findings show that house price inflation is accelerating sharply with Dublin showing the sharpest acceleration.

This is the fastest rate of inflation for more than two years and means that house price growth has more than doubled over the last 12 months.

National property prices went up by almost 12% while prices in Dublin increased by just over 11%.

Annual price growth in the capital jumped from 7.7% in April to 11.2% in May.

Director of Research at Savills, Dr John McCartney, has said there are a number of factors driving house price inflation in Dublin.

“Firstly it reflects Government policy changes," he said.

"The easing of loan-to-value restrictions last January, along with the introduction of Help-to-Buy, have been a greater stimulus in Dublin where high deposit requirements were previously more of a blockage.

"Allowing for time lags in the data, we are only now beginning to see the true effect of these policy changes in the figures.”

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