Business

House prices on the increase again in north, official index shows

ONS report shows rent prices in the north up 9.2 per cent over the year to May

The average price of a home in the Derry & Strabane district rose by 8.4 per cent between the first and second quarter of 2023, hitting £160,175.
The average price of a home in the Derry & Strabane district rose by 8.4 per cent between the first and second quarter of 2023, hitting £160,175. The average price of a home in the Derry & Strabane district rose by 8.4 per cent between the first and second quarter of 2023, hitting £160,175.

THE average price of a house in the north increased by 1.4 per cent in the second quarter of the year, official government data shows.

The Northern Ireland House Price Index put the average home at £173,898 in the April to June period, which is estimated to be just over five times the median annual gross full time salary in the north.

The increase in prices in the second quarter follows two-successive quarters of falling prices.

While other market research has detected weakening demand among Northern Ireland buyers due to the more challenging borrowing conditions, property insiders have consistently pointed to the shortage of housing stock in creating a demand-supply imbalance here.

That imbalance means most property analysts aren't expecting a significant price correction in the near to medium term.

The officially endorsed house price index for the north is compiled by the Northern Ireland Statistics and Research Agency (Nisra) in conjunction with Northern Ireland Statistics and Research Agency (LPS).

It was based on 4,776 property sales in the second quarter.

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The sharpest quarterly rise in prices was recorded for apartments, which rose 4 per cent to £130,432, while detached houses increased by 2.6 per cent to £271,161.

Semi-detached houses increased by 0.7 per cent to £167,489 on average over the quarter, while terrace homes remained level for the first quarter (£118,996).

Overall, home prices were on average, 2.7 per cent higher than 12 months earlier.

A separate report from the office of National Statistics (ONS) in London published on Wednesday confirmed rental inflation remains significantly higher than house price inflation.

The Index of Private Housing Rental Prices said rent in Northern Ireland increased by 9.2 per cent in the 12 months to May 2023.

That was slightly down on the recent peak of 10 per cent for the year to March 2023.

Average home prices by district in the north for the second quarter of 2023.
Average home prices by district in the north for the second quarter of 2023. Average home prices by district in the north for the second quarter of 2023.

On a regional level, the most significant change in house prices in the second quarter was recorded in Derry and Strabane.

The average price in the North West rose by 8.4 per cent between the first and second quarters to £160,175.

Lisburn & Castlereagh was the most expensive place to buy a home in the second quarter (£203,161), ahead of Ards & North Down (£199,745) and Causeway Coast & Glens (£198,603).

At the other end of the table, Armagh City, Banbridge & Craigavon was the most affordable place on average (£152,388), followed by Belfast (£157,629) and Mid & East Antrim (£159,259).

Ratio of median house sale price to median annual gross earnings.
Ratio of median house sale price to median annual gross earnings. Ratio of median house sale price to median annual gross earnings.