Irish house prices have accelerated at their fastest rate in the past six years, according to new figures.

The new figures from Permanent TSB and the ESRI show prices increased by 1.4% in April, up from March’s 1.3%.

It is the first time that average house prices reached ?250,000 outside of Dublin. In the Capital, the average cost of a home is expected to hit ?400,000 during June.

The news comes as the first of Government backed saving schemes (SSIA’s) are due to mature. These savings accounts are expected to add ?16bn to the economy.

Overall, Permanent TSB and the ESRI predict prices will rise by 10% this year – despite rising interest rates from the European Central Bank.