House prices rose 0.8% in January

House prices increased by 0.8% in the first month of this year, according to the latest Permanent-TSB house price index.

The figures, compiled in association with the Economic and Social Research Institute, put the year-on-year increase at the end of January at 15.2%, bringing the average price of a house to almost

€207,500.

Permanent-TSB said the January increase of 0.8% represents a moderate easing in house price rises compared to average monthly growth of 1.2% in the six months to December 2002.

A breakdown of the house price index shows that prices in Dublin rose by 1.1% in January, while prices outside Dublin rose by just 0.3%.

This brings the average price of a house in Dublin to almost €276,000 and one outside Dublin to €181,000.

Prices for second-hand homes rose by 1.3% during the month, while prices for new homes actually fell by 0.6%. Second-time buyers also experienced a disproportionate price rise of 1.6% in January, while first-time buyers were facing increases of just 0.2%.