Commuter belt house values drop a fifth in a year

THE decline in house prices is accelerating, with homes in the Dublin commuter belt losing a fifth of their value over the past 12 months.

Nationally, house prices fell on average 9.1% during 2008, with the biggest decreases in Dublin (11.7%) and surrounding counties Wicklow, Kildare, Louth and Meath at 16.8%. When inflation is taken into account the real national decline is more than 13%.

The findings were released yesterday by Permanent TSB and the Economic and Social Research Institute (ESRI). Based on the actual amount houses were sold for rather than asking prices, the review provides the clearest picture yet of the property market crisis.