Business

House prices up by 5%, but Brexit concerns affecting local market

The average house price in the north grew by almost five per cent last year to an average of £163,165
The average house price in the north grew by almost five per cent last year to an average of £163,165 The average house price in the north grew by almost five per cent last year to an average of £163,165

THE average house price in the north grew by almost five per cent last year, according to a new survey.

The latest Quarterly House Price Index report from Ulster University covering the final three months of 2018 show the average house price stands at £163,165. The figure represents a 4.9 per cent jump compared to the same period a year previous.

Despite the steady increase over the year, growth was more subdued over the last quarter, with only a marginal change (0.1 per cent) in price recorded from the 1,954 transactions.

The Belfast market was a particular plus point from the figures, recording a 6.5 per cent price hike and a quarterly rise of 2.2 per cent to an average of £173,969.

South Belfast remains the most expensive area in the north to buy a house, with the average home £231,766, while the cheapest price can be found in Craigavon and Armagh, coming in at £125,247.

Looking at 2018 as a whole, north Belfast has the lowest house price of £123,408, despite the area recording

an average £5,000 higher (£128,849) in the final quarter.

The Derry and Strabane area recorded the biggest house price rise over the year of 12.4 per cent to £132,651.

The distribution of sale prices broadly reflected the previous quarter, with the share of lower priced properties at or below £100,000 accounting for almost a quarter (22 per cent) of deals, while those sold at below £150,000 made up 58 per cent of transactions, compared to 60 per cent in the previous survey.

Over three quarters of transactions (78 per cent) were sold at or below £200,000, with the £250,000 and £300,000 price brackets accounting for 87 per cent and 93 per cent of deals respectively.

The latest results indicate a stable and affordable local market, but estate agents have noted the impact of impending Brexit withdrawal on March 29.

There is a strong feeling that prospective buyers are holding off on completing property deals until there is more clarity in relation to the political outlook.

Ulster University lead researcher, Dr Martin Hinch said the latest report highlights more subdued market conditions in the final half of 2018.

"This is consistent with housing markets elsewhere within the UK and would appear to reflect the high levels of political and economic uncertainty both in Northern Ireland and the wider economy."

Michael Boyd, deputy chief executive of Progressive Building Society believes the report reflects a housing market that is more sustainable compared to 2017

"The well documented current political challenges may have impacted vendors’ decision making this quarter, resulting in suppressed sales with seasonality also playing a factor. However, with unemployment rates below the UK average and continued affordability, the housing market is in a healthy place," he said.

Karly Greene, head of research at the Northern Ireland Housing Executive, which commissions the research, added:

“The local housing market was relatively buoyant in 2018 against a mixed background of political and economic conditions, and most of these factors carry over into 2019. All other things being equal, we would expect the relatively affordable and stable housing market conditions of recent years to continue, but the uncertainty about Brexit and what it may mean for the wider economy and consumer confidence in Northern Ireland may well have some impact on the housing market in coming months, depending on what happens at the end of March.”