The number of houses on the market available to buy on September 1 stood at nearly 15,500, up 22% on the same date last year and the highest total nationally in almost two years, according to new research.

The increase in availability on the market is driven by Dublin, where it is up 30% year-on-year, and the rest of Leinster, up 40%.

The latest house price report from Daft.ie shows that stock on the market is also higher than a year ago in Munster, where it is up 8%, and Connacht-Ulster, up 15%.

Report author and Assistant Professor of Economics at Trinity College Dublin, Ronan Lyons said: "Improved stock on the market over the course of 2022 has helped reduce inflationary pressures in the sales market.

"This is most notably the case in Dublin, where the total number of listings coming on to the market in the year to August was effectively in line with the pre-Covid number.

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"This has helped improve the stock on the market at any one point in time, the key predictor of future price changes."

"While weaker demand - due to inflation in other living expenses and to increases interest rates - may help stabilise prices, the true solution to the high level of housing prices remains increased supply."

However, despite the increased supply, the report also found that house prices are beginning to stagnate.

The Daft.ie report shows that a stabilization in housing prices was seen in the third quarter of this year, with the average listing price standing at €311,514 - up just 0.1% on the second quarter of the year and 16% below the Celtic Tiger peak.

However, year-on-year inflation remains at high levels of 7.7%. Mr Lyons said this slowdown in house price increases is due to improved supply.