New figures show that house prices continued to fall in October, and that almost €22,500 has been knocked off the value of the average house price since the start of the year.

The Permanent TSB/ESRI house price index showed a fall of 0.8% in October, a marginally smaller drop than in the previous two months.

Prices have fallen by 7.8% in the first ten months of 2008, leaving the average price at €265,364. Over 12 months, prices are showing a drop of 10.2%.

Permanent TSB's Niall O'Grady described the pace of house price falls as 'steady', but added that reductions in Dublin had started to accelerate.

House prices in Dublin fell by 2.6% in the month, compared with 1.4% outside Dublin. Prices in the commuter counties around Dublin dropped by 1.9%.

Prices for first-time and second-time buyers showed falls of 2.1% and 0.4% respectively. New house prices were 0.5% lower, while second-hand houses dropped by 1%.