NI house prices 'sustainable'

House prices in Northern Ireland are growing at a more sustainable rate than in much of the rest of the UK, according to the latest survey from the University of Ulster.

The report said prices rose on average by 8% in the year to the end of June.

The average home now costs £101,700, but this is in line with long-term averages prices.

This means if interest rates rise as expected later this year, a drop in prices is less likely in Northern Ireland than in other parts of the UK.

Prices in areas such as Londonderry and Strabane have risen by as much as 20%.

NI AVERAGE PRICES Northern Ireland - £101,759 Belfast - £100,647 North Belfast £80,310 South Belfast £126,532 East Belfast £109,867 West Belfast £83,905 North Down £115,485 Lisburn £111,641 East Antrim £90,320 Londonderry/Strabane £83,191 Antrim/Ballymena £98,521 Coleraine/Limavady/N. Coast £113,721 Enniskillen/Fermanagh/S. Tyrone £94,121 Mid Ulster £92,257 Mid & South Down £114,251 Craigavon/Armagh £88,692

Areas like Antrim and Ballymena have also increased, where housebuyers appear to be trading off longer journey times to work in Belfast in return for houses offering better value for money.

One of the report's authors, Professor Alastair Adair, said although the growth in the Northern Ireland property market was lower than comparable areas elsewhere, it was high compared with the Retail Price Index.

"The growth shows that demand for housing is still increasing and at 8%, it is more sustainable than it has been in the past," he said.

"Having said that, 8% is still much larger than other consumption goods when you consider that most other goods are either stable or falling in price.

"It represents an anomaly in that respect, and points to the fact that there is continuing high demand in terms of growth of new households, high land values and confidence in the housing market.

HOUSING TYPES Terraced houses - £73,930 Semi-detached houses - £92,849 Detached houses - £153,362 Semi-detached bungalows - £83,181 Detached bungalows - £130,586 Apartments - £96,092

"I see that continuing for the next number of years."

The quarterly report is produced in partnership with the Bank of Ireland and is supported by the Northern Ireland Housing Executive.

The Housing Executive's Chief Executive, Paddy McIntyre, stressed the value of this joint research.

"Monitoring house price trends plays an important part in tracking affordability across Northern Ireland.

"While we welcome the more subdued price increases we are nevertheless aware of the difficulties some first time buyers continue to face in certain areas," he said.