Average house prices in Dublin city and county fell by over 6% in 2015, according to a national survey by estate agent Real Estate Alliance. 

A combination of lack of suitable supply, high rents and the Central Bank's lending rules are believed to be behind a stagnation in the capital's market. 

The average house in Dublin city and county now costs €332,000, down €21,500 on last December's price.

Houses in the commuter counties and the larger cities have increased by over 4.5% in the 12 month period, with the average house now costing €206,853.

However, the biggest increase in house prices has been in the "rest of the country" with towns seeing jumps of 9.3% and average prices rising to €122,161 from €111,518.

The REA average house price survey concentrates on the sale price of a typical stock  home - the three bed-room semi. 

The estate agents say it gives an up-to-date picture of the property market in towns and cities countrywide to the end of the selling season in December.

REA Chairman Michael O'Connor said that what is evident over the last three months is that prices are only increasing in areas that offer people the accommodation that they want.

"People may want to buy housing, but if suitable properties are not available, they will not buy," he states,

"We are seeing a lack of supply of good three-bed semi-detached houses across the country, and a desperate need for new developments," he added.

He also noted that many potential second-time buyers now only have the option of renting bigger houses and letting out their own, as they are not able to afford the 20% deposit to be able to buy.

"There are very few suitable houses to buy at the lower end of the market for first-time buyers because potential second-time buyers have to way to trade upwards", he added.

www.rte.ie/