Housing shortage continues to drive up prices

A three-bedroomed semi-detached now costs an average of €195,361 - an increase of over €4,000 since the end of March with prices in Roscommon going up 14 per cent and Kilkenny City up 12.5 per cent.

In contrast Dublin city centre prices rose by just 1.4 per cent, while in the south of the county they were up by 2.1 per cent – slightly ahead of 2 per cent for Galway city.

Recent property reports have suggested supply may be starting to improve. However, the REA says shortages, which have seen supply run at 20 per cent of what is normal in some locations, are in fact worsening.

REA Chairman Michael O’Connor (pictured) told the Independent: “We are seeing firms which are in business for 50 years which have never experienced such a low level of supply, and this is responsible for causing sharp increases in prices in some areas over the past three months.”

He added: “There is no doubt the major factors affecting the Irish property market at the moment are supply of housing, the Central Bank restrictions, the banks’ mortgage lending policies and high rents.”