Irish property prices up 16pc

Irish house prices have risen by 16.3 per cent in past year, according to new official figures.

The annual rise in December was an increase upon November's year-on-year rise of 16.2 per cent and significant step up from the 6.4 per cent recorded in the twelve months to December 2013.

On a monthly level, residential property prices rose by 0.4 per cent.

Dublin led the country's growth, with prices up 22.5 per cent annually and 0.2 per cent on a monthly basis.

The price of residential properties in the Rest of Ireland (i.e. excluding Dublin)  rose by 0.7 per cent in December 2014, although this was still an improvement upon the 0.1 per cent recorded in December 2013. Prices were 10.2 per cent higher than in December 2013.

Despite the increases, though, house prices in Dublin are 35.6 per cent lower than at their highest level in early 2007, while the price of residential properties in the Rest of Ireland is 41.4 per cent lower than their 2007 peak. Overall, the national index is 37.6 per cenet below peak.