House prices rose by an average of 4.3% in the first three months of the year, according to the latest report by the property website Daft.ie.

It marks the largest increase in two years, with the average price of a house rising to €230,000.

House prices in Galway City and Limerick City have risen by over 16% while Dublin has seen a jump of nearly 9%.

Report author Ronan Lyons says lack of housing supply is the main reason for the increase in prices: