Healthy rise in NI house prices during first quarter

NORTHERN Ireland recorded the UK’s strongest annual house price growth in the first quarter of 2018.

There was a 7.9% increase, taking the average price to £137,965.

Average house prices in Northern Ireland are still 38% below 2007 levels, compared with the UK generally where house prices are 16% above pre-crisis levels on average.

Across the UK, annual house price growth fell to a seven-month low in March amid subdued consumer confidence, according to an index.

Average values increased by 2.1% year-on-year in March, marking the weakest annual growth seen since August 2017.

On a monthly basis, prices dipped for the second month in a row. A 0.2% month-on-month decrease in March came after a 0.4% fall in February.

The average house price in March stood at £211,625.

Nationwide’s chief economist Robert Gardner said: “On the surface, the relatively subdued pace of house price growth appears at odds with recent healthy rates of employment growth, a modest pick-up in wage growth and historically low borrowing costs.

“However, consumer confidence has remained subdued, due to the ongoing squeeze on household finances as wage growth continues to lag behind increases in the cost of living.

“Much will depend on how broader economic conditions evolve, especially in the labour market, but also with respect to interest rates. Overall, we expect house prices to be broadly flat, with a marginal gain of around 1% over the course of 2018.”