Business

NI house sales hit 10-year record high as prices fall

The Ulster University Quarterly House Price Index report shows that 2,372 transacations were recorded in April, May and June of this year - a 10-year high, although the average house price in the north has fallen
The Ulster University Quarterly House Price Index report shows that 2,372 transacations were recorded in April, May and June of this year - a 10-year high, although the average house price in the north has fallen The Ulster University Quarterly House Price Index report shows that 2,372 transacations were recorded in April, May and June of this year - a 10-year high, although the average house price in the north has fallen

NORTHERN Ireland house sales have hit their highest level since the property crash according to the latest industry survey.

The Ulster University Quarterly House Price Index report shows that 2,372 transacations were recorded in April, May and June of this year - a 10-year high, although the average house price in the north has fallen slightly.

Ulster University’s research is produced in partnership with the Northern Ireland Housing Executive and Progressive Building Society, has revealed the overall average house price is down by 3.7 per cent to £148,499.

The research suggests a number of factors could be behind the results, including the mix of properties by type and age in this survey and wider macroeconomic and political factors. Uncertainty arising from Brexit, the outcomes of the UK general election, the present lack of agreement on the formation of the Northern Ireland Executive, slower growth rates in the national and local economy and a number of pessimistic economic forecasts over the short to medium term are all recorded as contributing factors.

At a regional level south Belfast remains the most expensive place to buy a house with the average price down slightly to £203,120, almost £50,000 above the Belfast average (£154,980). The cheapest area to purchase remains north Belfast (£99,857), followed by Derry/Strabane (£118,627).

Professor Stanley McGreal from Ulster University said the latest survey has "mixed messages" regarding the health of the Northern Ireland housing market.

"Transaction levels are high suggesting a strong market in the second quarter of 2017 however this optimism is not reflected in average prices which are generally more subdued.”

Progressive deputy chief executive Michael Boyd highlighted a a weighted decrease in the average sale price, falling by 1.1 per cent over the quarter.

“There is no doubt that wider economic and political factors are having an impact including uncertainty following the triggering of Article 50, wage growth lagging behind inflation and the potential for the rise in interest rates," he said.

“However as one of the most affordable regions of the UK, confidence remains within the sector and this is supported by affordability, a stable local labour market and economic growth of 0.3 per cent in the early part of 2017. Just how the external political and macroeconomic issues play out remains to be seen but it is clear that these will be reflected in the level of growth of the local housing market in the months ahead.”

Karly Greene, head of research and equality at the Housing Executive added:

“The ongoing political and economic uncertainty mean there is relatively little impetus for house price growth, but the strong level of transactions suggests that the current pricing structure in the market is enabling many households – particularly first time buyers – to purchase homes at affordable prices.”