House prices for first-time buyers rise by 10.8%

RECORD levels of personal debt and an impending rise in interest rates will put additional pressure on borrowers, a leading economist warned yesterday.

The latest figures from Permanent TSB/ESRI show the average price of a house has risen by 6.8% so far this year. First-time buyers were hardest hit, with prices rising by 10.8%. The average cost of a new house now stands at €266,899. The cost of a second house rose by 6.1% to €278,538.

Figures from the Central Bank, also released yesterday, show our total level of indebtedness continues to rise at an alarming rate.