Unemployment To Blame For Falling House Prices

High unemployment and budget cuts are being blamed for the falling house prices in Northern Ireland, according to a survey by the Royal Institution of Chartered Surveyors.

The report by RICS and Ulster Bank also found that transaction volumes remained static in August.

RICS spokesman Tom McClelland said that the media was still dominated by economic uncertainty and rising living costs.

He commented: "They are clearly having their bearing on the local housing market".

"With economic news the world over dramatically bad in August, there is little surprise that activity and sentiment in the housing market have been impacted."

The survey's price balance, the lowest level since November 2010, stands at minus 51 points. This figure is calculated by deducting the number of chartered surveyors who claim prices have dropped in the past three months from those who maintain prices have increased.

Head of lending products at Ulster Bank, Derek Wilson, said that although prices have dropped, demand from first time buyers is still strong.

This news comes after another survey conducted by a recruitment agency, revealed Northern Ireland had the worst employment prospects in the UK and record numbers of people remain out of work.

See: NI Has Worst Job Prospects In UK.

(JG/DW)