NI house prices top European market

A report published today by the Royal Institute of Chartered Surveyors (RICS) European Housing Review, has today revealed that the increase in house prices in Northern Ireland last year, was the highest anywhere in Europe.

The report said that the cost of properties in the province increased by an average of 36% in 2006 – almost three times that of other areas in the UK, however throughout the rest of Europe Northern Ireland was closely followed by Poland at 32% and Denmark at 22%.

RICS Northern Ireland residential property spokesman Tom McClelland said that growth across the continent had been solid and added that Europe had resisted the lead of the US, where the market ground to a halt.

Mr McClelland said: "Fears of a considerable house price slowdown in the UK, Spain and the Republic of Ireland - which are considered to be over-heated markets - once again proved to be off the mark.

"The UK market as a whole performed well, with growth of around 10%, but it was Northern Ireland at 36% that was the real powerhouse of Europe as our relatively buoyant economic conditions, a strong investor market and a significant shortage in housing supply pushed prices up very significantly.

"Although this has been good news for investors, it has added to the considerable affordability issues facing many households and first-time buyers."

The report also stated that out of the big four markets in the UK, Germany, France and Italy – only the UK outstripped its 2005 performance and added that the UKs "dire land and new housing predicament, as lack of supply continued to artificially inflate the market."

The French market recorded a price drop of 7% and Italy dropped by 4%, while the German market remained stagnant.

The Scandinavian countries continued to grow, with Denmark rising around 22%, Norway was up 17% and Sweden 11%.

(EF/SP)