Cork house prices surge

Mr Coveney said, “We need to be seen to have an independent assessment of build cost that includes everything in order that we might have a benchmark to measure against in terms of our discussions on the cost of building and what is an affordable house and what is a reasonable price to expect in different parts of the country.

“We can then factor in land costs, etc., on top of that. We need to benchmark against the cost of building houses in other parts of Europe.”

Experts have warned that the continued spike in rents is likely to attract investors to the private market, buying properties with the intention of renting them out.

As such, low and middle-income earners, first-time buyers and renters are all likely to face continued heartache in the search for residential property.

Dr John McCartney, director of research at estate agent Savills, said prices are likely to continue rising as a result of this trend.

He said: “With demand vastly outstripping the supply of rental properties, rents are set to keep rising.

“This will lead to intensified competition between investors looking to buy properties and will drive further price growth.”

A government initiative, introduced in the budget, to help first-time buyers has had little impact in its early days.

The tax incentive scheme was designed to make it easier for first-time buyers to access the market, but the CSO data indicates that this group are still having trouble.

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