EMBARGO 00.01 THURSDAY 30 AUGUST: In the last twelve months the average property in Northern Ireland has risen by over £200 a day, and now costs £240,408, according to the latest house price survey carried out by UU property analysts.

The latest University ofUlster Quarterly House Price Index, produced in partnership with Bank of Ireland and the Northern Ireland Housing Executive, and covering April to June of 2007 showed prices up 51% over the year and by 10.5% over the quarter.

The University’s survey is the broadest-based and most authoritative of all those undertaken in Northern Ireland. In the second quarter it covered a sample of 2,206 housing transactions involving more than 100 firms of estate agents across all areas.

According to the authors of the report, Professor Alastair Adair, Professor Stanley McGreal and Mrs Louise Brown, the persistent high rate of annual price increase at just over 50% contrasts with the expectations of market cooling, though it is anticipated that the second half of 2007 will see lower rates of price growth. An early sign of this is the opinion of market players that property is taking longer to sell, also some market areas have seen low rates of growth in the second quarter which will ultimately impact on annual figures later in the year.

Bank of Ireland’s Head of Research in Northern Ireland, economist Alan Bridle, said the survey confounded expectations for some price moderation and was contrary to an increasing amountof anecdotal evidence of a cooling of the market.

He said: “The survey shows that the market seems oblivious to such pressures and influences as the rising cost of borrowing and house prices falling on the other side of the border.

He added: “There is a general agreement that the long-term health of the Northern Ireland market would be best served by an orderly cooling off in price growth. This remains our core expectation with a return to a prolonged period of single digit percentage increases on average. The longer the price boom continues, the greater the risks that the slow down, when it inevitably comes could be quite abrupt.”

With fewer and fewer houses selling at or below £100,000, the survey once again highlights the issue of affordability, particularly for first-time buyers with property at or below £100,000 accounting for only 1% of properties in the survey sold. There is also a declining number of properties sold in the next price band of £100,000 -£150,000 accounting for just 10% of sales. With 30% of all sales, the modal price range is now in the £150,000 to £200,000 price range. Some 27% sold for between £200,000 and £250,000 and a further 13% were sold for above £250,000. 19% of the sample went for at or above £300,000.

The Housing Executive’s Head of Research, Joe Frey said: “The preliminary findings which have recently emerged from the 2006 House Condition Survey confirmour view that the key factor driving the recent upsurge in house prices in Northern Ireland is the scale of investment in the private rented sector. The research evidence would suggest that in the coming decade an increasing proportion of younger households will have to meet their housing needs through renting privately rather than becoming owner-occupiers”.

The house price index reflecting the overall rate of increase in the market and specifically, the increases for individual property types has forged onwards to another new peak for the Northern Ireland housing market. The index, which is calculated relative to the base quarter for the survey in 1984, now stands at 930.92

Property Types

The report says all property types have shown highly significant increases in average price over the year.

Leading the market – semi-detached houses and terraced/townhouses - rose by almost 62.6% and 54.6% respectively to new average prices of £240,869 and £197,681.

Detached houses andbungalows have seen comparable annual increases of 46.3% and 47% to £348,347and £307,360 respectively.

Semi-detached bungalows increased by 47.6% to £206,940, despite a declining market share. Apartments at £196,506 saw the most modest price growth of all property sectors at 34.5%.

Over the first quarter of 2007, the short-term performance across all property types showed the average price rising by 10.5% which, said the report’s authors, was evidence ofcontinued strengthening price levels.

Location

Findings from this survey indicate that across all market areas average prices have risen substantially though there is significant variation by location.

Belfast

In Belfast the overall average price of a house was £239,754, an increase of 49.7% over the year. The market leaders in Belfast were semi-detached houses and terraced/townhouses which went up by 63.2% and 60% to £267,831 and £213,155 respectively.

South Belfast is the highest priced location within the city with the average price breaking through the £300,000 barrier for the first time to £302,436.

East Belfast is the next most expensive area in Belfast with an overall average price of £259,211. with an average price of £198,559 was slightly behind West Belfast where the average was £200,888.

Belfast Metropolitan Area

In Lisburn there was still an annual increase of 43.1% to £278,307. All sectors saw strong price growth with average prices of apartments increasing to £226,500 while the average price of detached houses moved beyond £400,000 to £409,459, an increaseof 49.8%. Semi-detached houses grew 60.3% to £252,240.

In North Down, the overall average price increased to £257,497 representing annual growth of 48.6%, which is significantly higher than the growth rate reported in the last quarter. There was some variation across property types but the market leader in this area was semi-detached houses with a 70.6% rise to £231,740.

The East Antrim market now has an overall average price of £206,117, passing the £200,000 mark for the first time.

North and North West

In Antrim/Ballymena the market grew well over the year, by 30.2% to £228,391. All sectors of the market advanced in average price.

Coleraine, Limavady and the North Coast saw the highest growth rate in the northern part of the province with an annual rate of increase of 49.8% to £277,169. Most sectors of the market had price increases of a similar magnitude though the detached house sector saw a slower rate of price increase.

In Derry/Strabane the price growth has been sustained at a consistent level with an annual rise of 25.1%,bringing the average house price to £189,515 with all sectors of the market growing significantly in average sale price.

The West

The overall average price for the Mid-Ulster market saw more modest growth compared with previous surveys of 36.8% to £242,384. There was a variable pattern of price growth across the market but semi-detached houses led the market with a 47.8% growth rate to £229,125.

In Enniskillen/Fermanagh/ South Tyrone the average sale price grew by 34.3% to £244,068. Semi-detached houses did best,increasing by more than 30% to £202,594. The average price of detached houses now exceeds £300,000 at £319,762.

The South

Craigavon/Armagh saw amajor annual increase of 56.4% taking the overall average price to £231,514. Semi-detached houses rose by a staggering 59.2% to £226,125 and terraced/townhouses grew 51.5%to £164,563.

The mid & south Down market continued to advance increasing the average home price over the year to£242,218, reflecting an annual increase of 32.3%.

Ends

Notes to Editors:

TABLES

Annual increase by property type

Average house priceby region

A COPY OF THE FULL REPORT IS AVAILABLE ONLINE AT

http://news.ulster.ac.uk/podcasts/QHPIQ207.pdf

Media contacts:

For University of Ulster: David Young, Press Office, University of Ulster 02890

366074/ 07808 911 343

For Bank of Ireland:Catherine Agnew at IAS SMARTS 028 9039 5500.

For NIHE: Imelda McGrath or Jim Murray 028 9031 8700

For further information, please contact:

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