NI house prices continue to rise

The average house price in Northern Ireland has risen to over £215,000 according to a new survey.

The study by the University of Ulster, Northern Ireland Housing Executive and Bank of Ireland said the average price of a house in Northern Ireland is more expensive than Scotland, Wales and the whole north of England.

Wages, however tend to be lower in Northern Ireland compared with most areas of Great Britain.

During the first three months of this year, prices rose 11% from the previous quarter and were 46% higher than they were at the same time last year.

Bank of Ireland Head of Research in Northern Ireland, economist Alan Bridle said: “The survey shows that we are living through remarkable times in Northern Ireland.

“However in time, the first quarter of 2007 may prove to be high watermark as far as Northern Ireland’s rate of residential inflation is concerned.

“Since Easter, close observation of the housing market would suggest that at long last the local price boom may be starting to come off the boil with a return to a more normal market.”

Mr Bridle continued: “Evidence to date largely anecdotal, but it will be a major surprise if we are not reported a slower rate of inflation in our next survey in the late summer.”

As the property boom continues, concerns have been raised in the Northern Assembly about affordability for first time buyers and the need for more social housing.

The Head of Research at the Housing Executive, Joe Frey, said the latest price increases re-emphasised the need to address the problems first time buyers face.

“The new (devolved) minister responsible for housing, Margaret Ritchie, faces an increasingly challenging task,” he said.

“In order to tackle the problem successfully the minister needs the support of the Department of the Environment, Department for Regional Development, and the Department of Finance and Personnel as well as the private sector.

“However, we may already have seen the start of a reversal of the trend towards increasing owner occupancy, with more newly forming households having no alternative but to enter and remain in the private rented sector for much longer periods.”

(JM/SP)