House prices rose by an estimated 32 per cent last year, according to the Irish Permanent, after its survey showed that prices surged again in November, rising 2.6 per cent in that month.

According to the latest figures compiled by the State's largest home loan provider, the November figure of 2.6 per cent is the highest monthly gain since July 1998 and reflects greater increases in house prices outside of Dublin compared to within Dublin.

Growth rates, for the third consecutive month, are running higher outside of Dublin. In November, the monthly growth rate was 2.9 per cent outside Dublin, compared to a rate of 1.6 per cent in the city. Nationally, the average price of a new home in November was £96,989 (€123,150) similar to the Department of the Environment's figure of £97,614 for the third quarter to September, 1998.

While the Department's figures show a fall off in the rate of increase of house prices, from 4.7 per cent in to the second quarter to 1.8 per cent in the third quarter, Irish Permanent's figures suggest that a late burst of activity at the year's end may reverse that trend.

Price growth for second-hand homes, estimated at 37 per cent for the year, is running higher than the estimated 27 per cent rate for new houses. Dublin prices are still increasing more rapidly than country prices.

The figures show less of an increase in Dublin prices than the 44 per cent recorded by First Active for 1998, in the results of their survey published last week. But Irish Permanent's estimated national 32 per cent rate is greater than First Active's figure of 27.8 per cent. While new house prices grew by a monthly 4 per cent in November, compared to a more modest growth rate of 1.9 per cent for second-hand homes, the growth in the second-hand market is greater on an annual basis.

In the 12 months to November, 1998, second-hand home prices rose by 34.5 per cent, while new home prices rose by 24 per cent. Prices being paid by second-time buyers are also increasing more rapidly than for first-time buyers. Second-time buyers were paying 33.5 per cent more in November, 1998, than in November, 1997, while first-time buyers were paying 25.9 per cent more over that period.

In less than three years - since January, 1996 - national house prices have risen by 56.4 per cent with most of that growth occurring in the 12 months to November, 1998.

In that 34-month period, Dublin prices have risen by 82.4 per cent, compared to a 45 per cent rate outside of the capital.