Eurozone house prices rise 7%

HOUSE prices across the eurozone rose by an average of 7% each year since 1999, the European Central Bank said yesterday.

Ireland was one of five countries where house price inflation exceeded the eurozone average, joining Spain, Greece, the Netherlands and France. Property prices in Germany and Austria fell over the period.

The ECB said price rises from 1999 were significantly stronger than the previous four years, when an average increase of just 1.5% was recorded. Lower interest rates, strong economic growth and investors shifting from volatile stock markets to the perceived safety of property, were the main reasons for the rise in prices.