House prices rose by 7.5 per cent in the second quarter of the year, according to the latest data from First Active.

Overall, prices have risen by 15.9 per cent for the first six months. Compared with 1998, the year-on-year increase is 34.2 per cent.

New house prices have continued rising faster than those for existing homes. Prices of new three-bedroom houses rose 9.5 per cent while new four-bedroom homes rose by 14 per cent from the first three months of the year.

According to First Active, there is a continuing trend for buyers to look for new homes which do not incur stamp duty and qualify for first-time buyer grants.