HOUSE PRICES fell by 0.9 per cent during August, according to the latest figures from the Permanent TSB/ESRI house price index.

While the decline in house prices slowed in July, the August figure indicates a return to the earlier steady fall in value. The average price paid for a house has now dropped by just short of €30,000 in the past 12 months.

The index shows average house prices falling by 6 per cent since the start of the year, and by 9.9 per cent since August of last year.

In July, the price of the average house fell by 0.2 per cent, according to the index, while the figure for June was 0.6 per cent.

"The very low rate in July was clearly an aberration from the trend over the past few months," according to Niall O'Grady, general manager business strategy with Permanent TSB.

"August re-establishes that trend and it's likely to continue through the remainder of the year."

The average price paid for a house nationally in August 2008 was €270,493. This compares to €287,887 in December 2007 and €300,375 in August of last year.

House prices fell more outside Dublin, according to the index. Dublin house prices fell by 0.8 per cent last month while house prices outside Dublin fell by 1.3 per cent.

In the first eight months of the year, house prices in Dublin fell by 5.8 per cent and houses outside Dublin fell by 6.7 per cent.

The average price paid for a Dublin house in August was €374,302.

The average paid for a house outside Dublin was €232,570. House prices in the commuter counties of Louth, Meath, Kildare and Wicklow fell by 0.8 per cent in August, compared to 1.2 per cent in July.

Prices for first-time and second-time buyers fell by 1.2 per cent and 0.8 per cent respectively.