House prices in Ireland rose by 4.6 per cent in the first three months of this year, according to the latest report from property website daft.ie. It contrasts with a 1 per cent fall in the final three months of 2014.

However, for the first time in nearly four years, the growth in Dublin prices was lower than elsewhere in the State. Prices in Dublin are now 2.9 per cent higher than in late 2014, whereas outside Dublin prices rose by 5.9 per cent in the same three-month period.

In Cork, prices increased by 7.2 per cent, while in Galway and Limerick they rose by 6.8 per cent and 6.7 per cent respectively. In Waterford, the increase was 4.9 per cent, while outside the cities the average increase was 5.8 per cent.

According to daft.ie, the average asking price nationwide is now €201,000, the first time since mid-2011 that it has been above €200,000. This compares with a low of €170,000 in mid-2013 and a high of €378,000 in mid-2007.

Average prices for north Co Dublin were €256,209, €223,400 for west Co Dublin and €466,015 for south Co Dublin. In the city, average prices were €291,456 for the north city, €268,517 for the city centre and €316,451 for the south city.

The report's author, Trinity College economist Ronan Lyons, said: "It is clear that the Central Bank rules have had an impact on the market. Dublin prices are now anchored to real economic conditions, with survey respondents expecting significantly slower house price growth now than a year ago.

“Similarly, compared to a year ago, a far higher proportion of respondents, in the capital and elsewhere, indicated the need to save for a deposit as a key reason for delaying buying a home.

“Outside Dublin, the Central Bank rules that link mortgages and incomes seem to have had, if anything, a positive impact on prices,” Mr Lyons added.

“The fact that house prices vary across the country by far more than incomes do means demand should reshuffle from Dublin to elsewhere in the country. While this may sound helpful, it does not address the underlying lack of supply in Dublin, which needs to be addressed as a matter of priority.”