House price rises above expectations - IAVI

A property survey from the Irish Auctioneers & Valuers Institute (IAVI) shows that price increases in many sectors of the housing market were higher than expected in 2005.

The suvey found that demand for housing continues to outstrip supply, with double-digit average inflation in all house sectors in 2005.

The IAVI report said that a shortage in supply of large Dublin second-hand family homes was pushing prices up further.

Three and four- bedroom houses saw the highest average rate of increase, at over 13%.

IAVI CEO Alan Cooke said that most of the factors that brought about the dramatic surge in values are still at play - i.e strong employment, low interest rates and real net immigration.

He said that the only factor he feels made a real contribution to slowing the rate of price growth is the year-on-year record construction figures.