The Irish Permanent, in conjunction with the Economic and Social Research Institute, is planning to introduce a comprehensive index of Irish residential house prices. Based on the bank's nationwide mortgage portfolio - it handles about one if every five home loan - the quarterly index will provide a measure of house prices both nationally and regionally, covering both new and second-hand properties. The first index measurement is due to be published in the middle of this year.

The Irish Permanent and the ESRI "have spent the past two years compiling a comprehensive house price index", according to Mr Diarmuid Bradley, general manager, strategic development, at the bank. Given the attention being paid to the rise in house prices, the index will provide a valuable reference point, he said.

The bank hopes that the index will become the authoritative benchmark for house prices in the Irish marketplace, in much the same way as the Halifax index is much-quoted in the UK.