NI house prices 'still declining'

The average house in Northern Ireland is now worth £136,862

House prices in Northern Ireland are declining faster than any other region in the UK, according to the latest figures from the Nationwide.

The building society said while average prices across the UK had increased by 1.1% in the second quarter of 2009, prices in NI continued to fall by 4.7%.

The average house in NI is now worth £135,862, an annual decrease of 26%.

Nationwide said the ongoing decline in NI was due to the unprecedented growth in house prices experienced in 2006-7.

"The ongoing relative weakness of house prices in Northern Ireland is mainly due to the fact that prices overshot significantly more on the way up than in any other UK region," it said.

Increase

"In 2006-7, house prices in the province rose by a staggering 79%, compared to 17% for the UK as a whole.

"For a short time, Northern Ireland was one of the most expensive regions in which to buy property, and saw house prices increase to nine times earnings, compared to six times earnings for the UK as a whole.

"It therefore comes as no surprise that Northern Ireland should be seeing a particularly sharp adjustment as a result of the financial crisis and recession."

Northern Ireland house prices
Sub-regions	Price in 2009 (Quarter 2)	% change over 10 years	Annual change (last quarter)	Annual change (this quarter)
Belfast	£190,647	127%	-37%	-29%
North-east	£155,584	148%	-33%	-22%
South-east	£170,267	132%	-30%	-20%
West	£126,559	116%	-28%	-25%
Source: Nationwide Building Society