Irish house loans dipped by 40% during the first quarter of this year, according to new statistics.

Over 15,300 home loans, totalling €4.4b, were issued in the first three months of 2008.

However, the figures, released in the Housing Statistics Bulletin, showed a 37.6% decrease in volume, with values dropping by 31.5%, year on year.

New statistics have also suggested new house prices have fallen by 3.1%, to €311,113 on average.

Second hand homes have been dealt a firmer blow, with a 5.4% dip, making the average cost €359,277.

Irish Housing Minister, Michael Finneran, who launched the report, said more than 1,800 social house has been delivered during the first quarter, in additional to 1,000 affordable homes.

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The minister said: "I am pleased to see the Government's efforts to increase the delivery of social and affordable housing are paying dividends, due in large measure to the additional investment made available by the Government under the National Development Plan.

"In the first three months of this year, we have delivered 1,531 social houses with a further 287 new units acquired under the Rental Accommodation Scheme.

"Under the various affordable housing schemes 976 units were provided, which is double the number of units provided over the same period last year.

"We have also seen a 73% increase in delivery of houses and apartments under Part V of the Planning and Development Acts 2000 - 2006," he added.

Part V of the directive recommends a potion of housing in private residential developments be made available to the local authority to boost Affordable Housing.

During the first quarter of 2008, 766 units were adopted under Part V, according to Mr Finneran.

A further 5,753 schemes were underway by the end of March.

(PR/JM)