Figures from the ERSI and Permanent TSB in Ireland report that house prices for first-time buyers are rising at almost twice the rate being experienced by second-time buyers.

House prices for first-time buyers rose by 9.4% in the first nine months of this year, compared with 4.8% for second-time buyers.

The average price paid by a first-time buyer in the Republic is now E242,172.

Dublin house prices grew by 1.1% in September, while prices elsewhere were up 1%. The annual rates of increase were 7.7% and 4.2% respectively.

Prices of new homes were up 0.6% in September, with second-hand prices increasing by 0.8%, bringing annual growth rates to 6% and 6.2% respectively.

House prices for first-time buyers rose by 1.7% in the month and 9.6% over the year.

Permanent TSB’s Niall O’Grady said that after months of moderate growth, sustained price increases from July suggested that the growth rate for the year may be close to the 8.6% level seen in 2004.

He said first-time buyers had switched their focus to existing houses rather than new ones after stamp duty changes in the Budget last December. Then, the Government raised the Stamp Duty threshold for first time buyers to E317,500.