Rate reform 'will hit new buyers'

Northern Ireland's houses have been valued for rating

First-time buyers will be hit hard by changes in NI's household rating system, a home valuer has warned.

Simon Cahill was speaking after Monday's government announcement of new official values for each household.

Under the reforms, about 30% of households are to face a rise of up to £150, with a small minority facing even larger increases.

Mr Cahill said first-time buyers were already financially stretched without the extra burden of increased rates.

"First-time buyers, as we all know, are finding it extremely hard to get their first step on the ladder, and this is going to be another additional cost for them," he said.

"They are already finding mortgages increasingly difficult to pay each month and suddenly they will be hit with much bigger rates bills, and we have water charges coming in as well."

Over the next few weeks, homeowners will be advised of their property's capital value.

That figure will then be used to calculate next year's domestic rates bill and the new water charges. Both of these are due in April 2007.

The capital values are set as of the start of January 2005.