Despite Irish house prices continuing to plunge, it has been confirmed July experienced a decelerated rate of falls.

A report, published by Permanent TSB and the ESRI found house prices dropped by 0.2% in July from June.

This constituted the smallest monthly decline so far in 2008.

July's figure created a total 5.2% fall in prices during the first seven months of this year.

In July, the average house in Ireland was valued at around €272,946, slashing 9.4% off prices, year-on-year.

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Niall O'Grady from Permanent TSB, said the lesser drop in prices could however be attributed to 'light' activity during the summer.

Dublin properties fell 0.6% during July, slightly greater than the 0.4% experience in other areas.

However, homes on the Dublin commuter-belt felt the sharpest drop - 1.2% - bringing the annual drop so far to 7%.

Both new and old homes across Ireland reduced by 0.2% in average value. Despite this new builds have bore the biggest brunt of price slumps, with a 6% decline so far in 2008.

The devaluations created 0.4% lower prices from June to July for first-time buyers, with a 0.2% price change for second-time buyers.

The statistics from the index are generated from Permanent TSB's monthly mortgage sales.

(PR/JM)