House price growth at lowest in nine years

THE rate of house price increases has slowed to its lowest level in nine years, according to a leading barometer of house prices.

The House Price Index, compiled by Permanent TSB and the Economic and Social Research Institute, found average house prices rose by just 3.3% between January and July, compared with an increase of 5.6% in the same period last year.

The slowdown is expected to continue in 2005 with the total increase for the year estimated to be just 5%, the bank said.