House Prices Rise Significantly

House prices in Northern Ireland have experienced the biggest rise since the economic downturn, according to the December Royal Institute of Chartered Surveyors (RICS) and Ulster Bank Housing Market Survey for Northern Ireland.

December 2013 marked the seventh consecutive month in which more chartered surveyor respondents reported rising prices than falling prices.

It was the highest reading since April 2007.

62% of respondents to the survey said prices were up in the three months to the end of December.

The news follows positive results in the June, July, August, September, October and November surveys and is the first time since the price peak that the market has seen a price balance above zero for seven months in a row.

RICS spokesman Samuel Dickey said: "There was a real contrast in how 2013 started and ended, according to the survey. January 2013 was the latest in a long line of months in which the survey reported a price balance in negative territory. However fast-forward to the end of the year and the data is considerably more positive. The housing market has followed a similar trajectory to the economy as a whole, with the second half of 2013 showing real signs of recovery.

"Whilst the market will see variations in different locations and property-types and will continue to experience challenges, the trend of improvement is expected to continue into 2014. RICS expects Northern Ireland house prices to rise by an average of 4% during the year."

Derek Wilson, Head of Lending Products at Ulster Bank, says: "Since the property price peak, we have lent over £1.75billion into the Northern Ireland economy in mortgages. We have a range of innovative mortgage products available to support demand across the full spectrum of the mortgage market and we are keen to help even more customers access mortgage finance.

"Looking ahead, while the picture is certainly more positive than it was, the housing market is not without its challenges. Whilst the number of first time buyers has increased significantly, the ‘home-mover’ market remains much more static, as many people take time to adjust to the new reality and set their expectations accordingly. But with a degree of confidence returning, and a greater sense of realism evident in property values, both on the part of sellers and buyers, 2014 should see the market continuing to improve."

(IT/CD)