Irish house prices have continued to slump, with almost 4% knocked-off asking prices last month.

Property website Daft.ie has revealed market values are now estimated at 11% lower than this time last year.

The average house price in Ireland is now €312,500, according to figures.

Between July and September asking prices dropped by around 3.8%, on average, according to the property site.

Buying a house is now almost 11% less expensive than this time last year.

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The worst affected regions were Clare and Cork, having recorded between 7% and 7.8% falls.

House prices in Tipperary, Leitrim and Roscommon dipped by more than 6%.

The ongoing financial crisis in the both the Irish economy and the wider global implication have been blamed for the falls.

The website said weakening market confidence has meant less money is available to borrowers, particularly those hoping to buy a home.

The latest figures have been formulated from listings on the Daft.ie website.

Calls have been made to the state to allow tax-breaks for first time buyers in next week’s budget.

However, Daft.ie Economist Ronan Lyons expressed caution over such a move.

He said similar measures had added to the previous housing market bubble, which later proved unsustainable.

(PR)