House prices up 3.5% in first three months of 2006

Average house prices are increasing at their fastest rate in six years, according to the latest house price index published by the ESRI and Permanent-TSB.

The two organisations said average prices had increased by 3.5% in the first three months of this year, the fastest rate of increase since the same period in 2000.

This means that prices have risen by 12.1% in the past year.

The average price paid for a house in Dublin has now reached €384,000, compared to €249,000 in the rest of the country.