House prices increase 5.9%

House prices rose by 5.9% in the first six months of this year, according to the latest edition of the Irish Permanent House Price Index.

This figure compares to a 12.5% rise over the same period last year.

The Irish Permanent predicts that the yearly increase for house prices in 2001 will be around 10%, a sharp fall on the 21% figure recorded in 2000.