Housing supply problem could be fixed by 2019

After slowing to 5.5% in June 2016, annual house price inflation has been on a strong upward trend since then.

The latest CSO data show that the pace of growth quickened considerably over the summer, with prices rising by a strong 7.5% over the four months from May to the end of August. By August, prices were up by 12.2% on a yearly basis, the fastest annual rate of growth since June 2015.

Looking at the geographic breakdown, the acceleration is being driven by a sharp pick-up in Dublin prices. In August, prices in the capital rose by 11.9% compared to year-earlier levels, quite some way above the 4% rate registered in summer 2016.