A member of the government has admitted that the increase in house prices in Dublin over the past year is 'in the bubble territory'.

Meanwhile work is underway to address a possible shortage of homes in the capital by the end of next year.

Official figures from the Central Statistics Office (CSO) yesterday showed house prices back on the up.

In Dublin over the past year, some houses increased by more than 10% in value. However values outside of the capital fell by 2.6% compared to August 2012.

And it seems cash sale transactions are becoming more prevalent. A study by the property company Savills shows that 57% of all residential homes brought during the first half of this year were paid for with cash.

The figures showed that overall property prices in Dublin and around the country are still 53% and 48% lower respectively than at their highest level in February 2007. Junior Finance Minister Brian Hayes.

Despite empty houses and ghost estates dotted all over the country, a shortage is on the cards in Dublin. Environment Minister Phil Hogan says this is being tackled.

So there is a suggestion that some action could be taken in the Budget to address housing.