NI house prices could rise by 30%

House prices in Northern Ireland could face a 30% increase over the next year, according to residential land specialists O’Connor Kennedy Turtle (OKT).

The prediction follows a series of major sales of residential development property at auction – all of which underscores market data emerging from industry sources.

OKT partner Mark Patterson said: “The property boom in Northern Ireland is long established, we know average house prices have increased from around £42,000 to over £150,000 in the decade up to 2005.

“A recent HBOS report found that Northern Ireland prices increased 30% in the first quarter of this year. A combination of anecdotal evidence and data from market analysts suggests to us that annual house price inflation will continue upwards in line with the HBOS findings.”

According to the Royal Institute of Chartered Surveyors (RICS) Housing Survey Report prices accelerated in June in comparison to May, “surveyor expectations for price rises over the next three months reached the highest level since March 2004”

Nationwide Building Society reported that East Anglia and Northern Ireland were the only regions where “the quarterly growth rate was higher in the second quarter of 2006 than the first.” And according to the Council of Mortgage Lenders: “A strong demographic profile will support housing demand and property prices going forward, and necessitate high rates of housebuilding.”

Mr Patterson continued: “We’re witnessing high levels of confidence and there’s little sign of this edging off. Since March we’ve handled over £36 million worth of residential land sales – this peaked in the last couple of weeks of June when £20 million of land went under the hammer.

“And what is interesting to note is that big sales are coming through from Lisburn and Lurgan, and across the North Coast. This is not Belfast-centred – the demand is there right across the province.

“There are many factors involved here – but principally this upward trajectory is being fuelled by developers attracted by the growth potential within the housing market."

He added: “The trend we’re experiencing is also the practical outworking of numerous analyst predictions. The Nationwide Building Society recently concluded that, with annual house price inflation of 24.9%, Northern Ireland house prices are ‘booming’. The Nationwide also found that the average house price in Northern Ireland increased by around £17,000 in the first half of this year.

“And according to a RICS report, 98% of surveyors here reported price rises – and was the only UK region where surveyors experienced no price falls."

(EF/SP)