House prices increased by 2% in September leading to 12.8% rise annually

Latest: Residential property prices rose by 2% in September, with annual inflation now 12.8% — the sharpest pace since May 2015, according to the latest property report from Davy Research.

Update 12.30pm: Residential property prices rose by 2% in September, with annual inflation now 12.8% — the sharpest pace since May 2015, according to the latest property report from Davy Research.

In their latest report Davy say rising leverage in the mortgage market has driven Irish house prices upwards, but banks have now almost fully utilised their allocation of loans that can exceed 3.5 of income so they expect house price inflation to slow gradually to 8% in 2018.