Posts with tag: Northern Ireland house prices

Northern Ireland Property Prices Rising Fastest in UK

Property prices in Northern Ireland are expected to increase faster than anywhere else in the UK in the coming months, industry experts claim.

The Royal Institution of Chartered Surveyors (RICS) predicts a 4% rise due to a shortage of available homes and more new buyer inquiries.

Northern Ireland Property Prices Rising Fastest in UK

Northern Ireland Property Prices Rising Fastest in UK

The RICS and Ulster Bank residential market study found that properties are not coming onto the market in substantial numbers.

Spokesperson for the RICS, Samuel Dickey, says that the local market is continuing its recovery in terms of activity and average prices: “There are economic challenges ahead, which will likely act as headwinds for the housing market, but our view remains that prices will increase over the course of the year by some 4%.”1

Head of Lending Products at Ulster Bank, Derek Wilson, says that after a “muted” first quarter, April and May had been stronger concerning activity.

“These have been robust months for mortgage demand, and that trend appears to be continuing into June,” he adds.

Wilson continues: “Our aim is to offer choice to customers and to support them in making the financial decisions that are right for them. That’s why we have launched our biggest ever range of mortgage options, with some of our lowest ever rates, as well as a new seven-year fixed range.”1

A net balance of 60% of Northern Ireland surveyors stated that prices increased in the last three months – a higher figure than all other UK regions. Additionally, 43% expect them to continue rising in the next three months.

Regarding newly agreed sales, 35% of local surveyors said they grew in April and 8% predict they will increase in the coming three months.

After a continuous downturn from 2007-13, confidence in the Northern Ireland housing market has picked up in 2015, particularly in the private resale and new development sectors.

Experts have witnessed strong demand in the new homes sector in the last six to nine months. This is due to considerably less building during the recession and buyers being more eager to buy new homes, believing they are secure investments.


Decline in House Prices in Northern Ireland is Persistent

Published On: January 28, 2012 at 9:36 am


Categories: Property News


The staggering decline in house prices in Northern Ireland is persistent, with west of the Bann the worst off, according to a Government index.

The Land and Property Services, of the Department for Finance and Personnel, state that residential property prices dropped by 11% in the year to June 2012.

Between April and June they fell by 3%, leaving the area with an average house price of £95,623.

The residential property price index uses stamp duty records to document house prices and includes repossessions and auction sales in its findings.

A spokesperson for the index says that following a peak in house prices in 2007, they have declined by 53%.

“Since the third quarter of 2007 [the index] has fallen initially sharply, albeit with prices stabilising in 2009 and the first half of 2010.

“Since 2010, prices have continued to fall but at a less marked rate of decline.”

Decline in House Prices in Northern Ireland is Persistent

Decline in House Prices in Northern Ireland is Persistent

Additionally, in quarter 3 (Q3) of 2011, only 253 houses were sold, compared to 387 in the same quarter of the previous year. The average selling price of a National House Building Council (NHBC) registered new home was £152,900 in Q3 2011, which shows a 9.3% fall, on the same period in 2010. In financial terms, this is a drop of £15,600.

The average cost of a property in Northern Ireland in Q3 2006 stood at £159,900, compared to the peak quarter between April and June of 2007, when the average price was £216,400.

Currently, the average house price in the south and west of Northern Ireland is £84,893

Richard McCulloch, of Stanley Best Estate Agents in Magherafelt, Co Londonderry, says that the south and west are experiencing significant declines: “West of the Bann has traditionally achieved lower asking prices, which reflects the realities of moving further away from Belfast where all the public sector jobs are.”

He claims that sales are happening at the lower end of the market, and with prices lower, people are not committing to large mortgages.

“Gone are the days that first time buyers set out with a noose around their neck in the form of a high mortgage,” he says.1

Economist John Simpson noted that it would be “excitable” to imply that Northern Ireland had gone through the worst property crash in the world.

He explains: “Northern Ireland had the most embarrassing hyper-inflation in house prices in 2005-6, worse than anywhere else in these islands.

“We are now living with the consequences of that, and many people are having to get used to the idea of being in negative equity over the next 20 years.”1

Professor Alistair Adair continues: “It’s one of the biggest crashes in these islands, but Spain has also experience a massive decline.”1

Average prices are presently 7% less than Q1 2005, but more transactions are now taking place.

There were 2,962 sales in Q2 2012, which is 11% higher than the same period last year.

Richard Ramsey, Ulster Bank’s chief economist, says: “By region, the steepest decline was within the west and south of Northern Ireland

“This region saw [the index] post a quarterly fall of 10% in the second quarter of 2012 and is 17% lower over the year.

“Since its property price peak, prices have fallen by 55%.”1