NI’s average house price up £6,000 as new builds boost market

NORTHERN Ireland’s average house price has grown by £6,000 over the last year to just over £135,000, according to the latest government report.

Percentage growth of 4.8% for June to September this year — compared to the same time a year earlier — was the fastest annual growth since the start of 2017.

And the number of new homes being built is also at its highest for around 11 years.

The rise in the average house price over the summer months was more than £2,000, or 2.3%, on springtime prices.

The house price index, which is compiled from stamp duty returns by government body Land and Property Services, said house prices were highest in Lisburn and Castlereagh, where the average was £161,215.

The lowest prices were recorded in Armagh City, Banbridge and Craigavon at £116,368.

The index also shows growth of around 21.7% in the average price since early 2015.

However, prices still remain around 40% below the £224,670 peak of 2007.

And the average house price is nearly five times the level of average earnings, the index also said.

There were 5,722 homes sold during the three months covered in the report, though that figure is expected to grow after late returns are counted.

A separate report also recorded a 17% jump in the number of new homes completed by builders, while the number of new homes started was up 12%.

Ulster Bank chief economist Richard Ramsey said: “While strong rates of house price growth are not viewed as desirable for an economy, double-digit increases in transactions or housebuilding are.

“The most encouraging housing market statistics today concerned the number of housing starts and completions.

“During the first three quarters of 2018 private sector housebuilders reported a 17% year-onyear increase in the number of completed dwellings.

“Meanwhile, the number of housing starts has increased by 12% over the same period.

“Private sector developers have started building more housing units (over 7,300) than at any time in the last 11 years.

“Increased levels of housebuilding are particularly important for Northern Ireland’s construction industry given the challenges facing the wider sector,” Ramsey added.

Of 11 council areas, all had recorded growth in the average house price year-on-year.

And on a quarterly basis, just Armagh City, Banbridge and Craigavon, and Derry City and Strabane recorded falls, at 0.4% and 0.2% respectively.