House prices rose by an average of 4.3% during the first three months of 2017, the largest three-month increase in two years, according to the latest House Price Report released today by property website, Daft.ie.

The increase means that the national average list price during the first three months of the year was €230,000, 9.4% higher compared to last year and over €65,000 higher than its lowest point.

The annual rate of increase in house prices in Dublin was 8.7% in the year to March, up from just 1% at the same time last year.

Prices have also increased in the other cities and in Leinster, outside of Dublin.

In both Galway and Limerick, the average price is 16.3% higher compared to last year.

In Cork city, prices are 10.7% higher than the same period in 2016, while in Waterford, the increase was 13.9%.

Elsewhere in the country, the average rise was 9.4%, but this varied from 16% in Longford to just 3.6% in Kerry.

The decline in the total number of properties for sale nationwide continues, with just 20,500 homes on the market in March, down from almost 24,000 a year ago.

This figure is at its lowest since October 2006 and is down two-thirds (67.4%) from the October 2008 peak of almost 63,000.

Commenting on the figures, Ronan Lyons, economist at Trinity College Dublin and author of the Daft.ie Report, said: "The combined effect of the tweaks to Central Bank mortgage rules and the new help-to-buy scheme has been to significantly stimulate first-time buyer demand.

"This is seen in renewed house price growth, particularly in and around the major cities. While there may have been a political motive to these measures, it is important now that the chronic lack of construction activity becomes the main focus for policymakers."