'House prices growing at half last year's rate'

House prices are growing at half the rate they were this time last year, according to the latest Permanent-TSB house price index.

The financial institution said prices increased by 0.3% in February. It also said it expected prices to increase by around 4% or 5% during the year.

Spokesman Niall O'Grady said these moderate rates of growth were more sustainable in the long term than the increases of up to 20% recorded in recent years.

"It's healthy for first-time buyers [and] it's also good for existing home owners who are trading up, because the last thing they need is the gap between the property that they have and the property they want increasing all the time," he said.