NI house prices continue to climb

Northern Ireland houses prices are continuing to climb, the latest University of Ulster Quarterly House Price Index survey has shown.

Produced in partnership with Bank of Ireland, and supported by the Northern Ireland Housing Executive, the survey shows a quarterly increase in prices of nearly 4% over the final three months of 2004 with the average house price in the province now at £122,661.

The authors of the House Price Index - Professor Alastair Adair, Professor Stanley McGreal and Louise Brown of the University of Ulster - said: “The growth in prices compared to the start of 2004 is at the high end of everyone’s expectations and signifies that the local property market has been much more robust than anticipated.”

However, the trio said an area of concern will be the falling proportion of houses that come within the £50,000 to £100,000 ‘starter’ band, which raises issues around affordability.

With the average price of a house having risen by £300 a week over the past year, Bank of Ireland’s Head of Research in Northern Ireland, economist Alan Bridle, said the natural question was whether prices would go on rising.

“The answer is definitely yes - homeowners have a number of reasons to be cheerful.

“The local economy will see steady growth again this year, interest rates are likely to remain stable, the buoyant investor market is offsetting lower numbers of first time buyers and there are savings for buyers as a result of the rise in the Stamp Duty threshold in the Budget.”

The value of the NI House Price Index, meanwhile, has risen to a new peak of 467.91.

(MB/SP)