Average house prices in Northern Ireland dipped in the last quarter of 2002, slowing the annual rate of increase to just under 8%, according to the latest Quarterly House Price Index produced by the University of Ulster in partnership with Bank of Ireland.

The survey, covering 2,230 properties sold across Northern Ireland in the three months to the end of December 2002, showed that the overall average price of residential property stood at £98,616, a drop of 1.74% from the record level of £99,787 set for the third quarter of 2002.

The University of Ulster, which gathers information from more than 80 property agents on house sales across all property types, said there was some evidence that price increases were slowing down. But behind the average figure, it said, were considerable variations in price because of the diversity of properties and their locations. Prices of individual properties in the survey started at below £10,000 but only 8% of the houses sold for under £50,000 and one third sold for more than £100,000.

The University said the slightly lower average price in Q4 needed to be viewed in that context and alongside seasonal variations in the market, rather than being seen to represent any downward trend in price levels.

The latest survey showed diverging trends across different property types. Taken over the year, the highest growth in prices was in semi-detached bungalows, up by just over 14% to £84,815 but with a market share of just 5%. Terraced houses, accounting for 25% of the survey, showed an annual increase of almost 13% to £71,772.

For detached houses the rise in average price over the year was almost 9% to £154,057 and semi-detached houses were up 7.7% to £87,595.

Over the full year in 2002, apartments showed an average price of £94,217 compared to £87,749 for 2001.

South Belfast is still the most expensive place to buy a house with an average price in the fourth quarter of £142,251, while the most affordable region was Londonderry/Strabane with an average of £75,178.

Alastair Adair, Professor of Property Investment, University of Ulster said: “This report highlights a slight seasonal downturn in market activity normally found in the final quarter of the year. Nevertheless actual price levels across the market remain high reflecting the diversity of properties and locations. Overall the current annual price rise of just under 8% represents a more sustainable rate of price increase which is in keeping with the long term trend in the province’s housing market.”

Q4 Alan Bridle, Senior Manager, Research at Bank of Ireland in Belfast, said: “There may be some disappointment that the average house price in Northern Ireland did not break through the £100,000 barrier in the last quarter – but we may not have long to wait."

(GMcG)