Shortage of supply and Dublin demand drives up house prices

A shortage of supply is driving up house prices with sales in Dublin skewing national figures and talk of a recovery premature, according to analysts.

Property prices are up more than 6% nationally over the last year with continued evidence that demand in Dublin is driving the revival.

In October, the value of homes nationwide increased 1.8%, the same as in September, while the popularity of some areas in Dublin and a lack of supply pushed prices up there by 2.3%.