Almost 10% was knocked-off the price of Irish houses in the year leading up to August, representing, on average, a €30,000 drop in value.

The latest figures form part of the Permanent TSB and the ESRI house price index, which has suggested prices fell by around 0.9% from July to August.

This created a total 6% drop in value for the year.

August's fall was much bigger than the 0.2% recorded in July.

The 12 months leading to August experienced a 9.9% drop, pushing the average house prices down from €300,375 to €270,493.

-- Advertisement --

Niall O'Grady, from Permanent TSB, said August's price plunge had continued previous gloomy trends, following the low rate of decline experienced in July, described by Mr O'Grady as "clearly an aberration".

Dublin felt a 0.8% fall in house prices during August, with other parts reaching a 1.3% rate of decline.

Homes in the commuter counties, around Dublin, also experienced a 0.8% drop, bringing their annual decline to 7.8% so far this year.

New house costs dropped by around 0.4% in August, with second-hand homes falling 1%.

The average price of a new house has fallen by 6.6% so far in 2008.

First time buyers would have seen a 1.2% decline in the cost of a home in August compared to July, whereas second time buyers would have seen a 0.9% decline.

The index is based on an analysis of Permanent TSB's monthly mortgage sales.

(PR/JM)