1st October 2002

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Confidence in the Northern Ireland housing market remains high with average house prices increasing by more than 8%, reports the University of Ulster in its latest Quarterly House Price Index, produced in association with Bank of Ireland.

The survey, which reports on the state of the housing market between April and June 2002, is based on sales data for 2,194 properties sold across Northern Ireland. It gathers information from across 80 commercial and other sources and presents market performance in an easily digestible format with specific regional analysis.

For the first time in the history of the index, sales data for the City of Belfast has been broken down into four separate geographic areas - North, South, East and West.

Summary of the main findings:

• The average house price has increased by 8.21% to just over £95,000.

• All property types have demonstrated considerable increases in value year on year with terraced houses leading the market with an increase of 13.44%.

• There are clear signs of recovery in the apartment market with prices up by nearly 10%.

• With an average house price of £151,811 South Belfast is the most expensive place to live in Northern Ireland.

• Londonderry/Strabane is the most affordable place to live with an average house price of £69,815.

• Newly built properties made up 20% of the market.

• The value of the House Price Index has risen substantially to reach a new high of 354.57 highlighting the potential for significant levels of return to property investors.

Professor Stanley McGreal, Professor of Property Research at the University of Ulster said:
“The principal finding from this survey is the continuing upward growth in house prices, with properties having increased on average by over 8% in comparison with the same quarter in 2001.

“Confidence remains high in the residential sector, with demand levels stimulated by the highly favourable interest rate environment for purchasers, still generally buoyant local economic conditions in the province, relatively low unemployment and new household formation. Average price levels for the year are up across all sectors of the market and in most of the regional sub-markets throughout the province with the highest rate of annual increase for terraced houses.”

David McGowan, Chief Executive, Bank of Ireland said: “The University of Ulster's Quarterly House Price Index has long been regarded as the most authoritative and independent survey of the state of the Northern Ireland Housing Market. The index is an invaluable source of information for lenders, borrowers and all those who have an interest in the domestic property market.”

“Bank of Ireland, as a major player in the mortgage market, is therefore delighted to support the University's work in this area and to be associated with such high-quality research.”

For further information, please contact:

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