House building boom in NI

New houses selling well in Northern Ireland

House building in Northern Ireland increased by 14% during the first three months of this year, according to statistics released by the National House Building Council.

In all, 2,760 applications were made to build new homes in the province during the first quarter of 2000.

First time buyers finding it harder to secure homes

The figures also indicated the anticipated average selling price of new homes during the period was £86,000, up from £75,000 in the first quarter of 1999.

Based on actual selling prices, the proportion of homes sold for over £100,000 was 15%, an increase on the same period last year (14%).

During the quarter, the NHBC's index on first time buyers' ability to buy, indicated they have been finding it harder to secure homes this year.

Tom Kirk, NHBC director in Northern Ireland said: "These figures indicate that 2000 will be another strong year for house building in the province.

"The main news for house buyers is the abolition of MIRAS (mortgage tax relief).

"This should help slow house price inflation and ease pressure on interest rates."

Rising prices

The news of an increase in the construction of new homes followed a recent survey which suggested that Northern Ireland house prices rose by more that 10% last year.

Carried out by the University of Ulster in conjunction with the Royal Institute of Chartered Surveyors (RICS) and funded by Ulster Bank, the survey is one of the most definitive indicators of property prices in the province.

The survey found that on average, a Northern Ireland property cost more than £75,000, with the biggest rise during the year in the value of apartments and terraced houses.

NI house price rises

Overall up 10%

Apartments up 20%

Terraced up 15%

Detached up 11%

Semi-detached up 9%

Bungalows up 3%

It said that during last year, house prices continued to rise throughout the market but that there was an increasing demand for smaller properties.

The biggest rise was in the prices of apartments, up 20% at an average price of £92,000, while terraced houses rose 15% at an average of £50,000.

At the other end of the scale, there were only modest increases in the bungalow market, up by around 3%.