3rd September 2001

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The principal finding of the latest house price report for Northern Ireland issued in the Ulster Bank sponsored Quarterly House Price Index for the second quarter of 2001, is the recovery of the market during the spring months, following a slow down in the rate of house price growth in the early part of the year. This finding is apparent across most of the different sectors of the market and at a sub-regional level, though there is some variation in performance by property type and market area across the province.

The Index, prepared by the Centre for Research on Property and Planning at the University of Ulster in conjunction with The Royal Institution of Chartered Surveyors (RICS), suggests that although the market has performed well during the spring quarter, this trend is not unusual. The weighted increase in prices over all sectors of the residential market compared with the situation for the second quarter of 2000 is 11.47%. The highest rising sectors are detached houses with average price up by 14.61% and detached bungalows up by 15.72%. Semi-detached bungalows with a 13.20% and semi-detached houses with a 12.73% increase also show significant price growth over the year. In contrast the rate of price increase for terraced houses is lower, 5.70% and in the apartment market the average price has declined by 2.20% over the year.

Taking all house types into account, the average price in Northern Ireland now stands at £86,705. The price performance index, with a base value of 100 set in the last quarter of 1984, has increased to 328.04 but is below the peak value of 332.00. The average price by sector for the second quarter of 2001 is £134,039 for detached houses, £111,126 for detached bungalows, £83,804 for apartments, £79,953 for semi-detached houses, £71,580 for semi- detached bungalows and £59,895 for terraced houses.

The authors of the report Professor Alastair Adair, Professor Stanley McGreal and Mrs Louise Brown highlight the mixed messages coming from the housing market over the first half of the year. According to the authors “ it is uncertain whether the market is at or beyond the peak of the property cycle. This will only become apparent when the analyses for subsequent quarters become available.”

Commenting on the results of the survey, Gerry Simms, Head of Retail Banking with Ulster Bank said,

“Overall the outlook remains positive for both the housing and mortgage market - with steady growth and the low interest rate environment continuing to make mortgages affordable.”

Spokesman for the RICS, Tom McClelland said,

“Recent reductions in interest rates will help buyers and keep the market bubbling. As a region 60% of Northern Ireland jobs come from the public sector. This job stability reflects a likelihood of market stability.”

For further information, please contact:

Press Office Department of Communication and Development
Telephone: 028 9036 6178
Email: pressoffice@ulster.ac.uk