House prices are continuing to rise, with new figures showing a 14.8 per cent increase across the State between January and August 2000. This compares with a rise of 11.3 per cent in the same period last year and shows that, despite Government initiatives, house prices are still accelerating.

The figures, which are compiled monthly in the Irish Permanent House Price Index in association with the Economic and Social Research Institute, show a 2 per cent increase in house prices in the month of August, slightly ahead of the 1.9 per cent recorded in July.

Over the 12 months to the end of August, house prices increased by 21.6 per cent, up from 21.1 per cent in the same period last year.

The August figures fail to reflect the impact of the most recent Government initiative on foot of the third Bacon report, which aimed primarily to curb investor demand for property.

The house price index for September and October should give a firm indication of whether the recommendations in the report, which were adopted during the summer in the second Finance Act 2000, are having any effect on property prices.

Commenting on the latest figures yesterday, the Fine Gael housing spokesman, Mr Billy Timmins TD, said the survey was an indictment of the Government, which has failed to make any meaningful progress on the housing crisis.

"Average house prices have increased for first-time buyers by almost £21,000 in the last 12 months. This is proof positive that the lack of any imaginative policy by this Government will continue to bar more and more young couples and first-time buyers from the housing market," Mr Timmins said. The index shows house prices outside of Dublin are rising more quickly than those in the city. It records a 1.1 per cent increase in Dublin compared with a 2.4 per cent increase throughout the rest of the State.

Over 12 months, though, house prices in Dublin rose well ahead of the rest of the State, at 16.7 per cent compared with 14.8 per cent.

The index also reveals that the price of second-hand houses is still rising more strongly than new house prices, at 2.3 per cent compared with 2 per cent.