Property prices in North hit levels not seen for seven years

Residential property sales in the North hit levels not seen in seven years between January and March, according to latest UK official government statistics which show there were nearly 4,200 transactions.

The statistics are based on the number of transactions that involved stamp duty payments - stamp duty must be paid on every property in the UK with a purchase price over £125,000.

The latest stamp duty figures suggest that property sales in Northern Ireland were 21 per cent higher in the first quarter of 2014 compared to the same time last year.

According to the Northern Ireland Residential Property Price Index property prices rose by seven per cent over the year from quarter one in 2013 to quarter one of this year. But residential prices still remain six per cent lower than they were in quarter one 2005.

The latest price index highlights how at the peak of the local short-lived property bubble prices were more than nine times the median salary. Since the downturn in the market the ratio has continued to fall and the median residential property sale price is now just over four times the median salary.

The North's Finance Minister Simon Hamilton yesterday claimed the latest property sales figures provided "clear evidence of the continuing stability and steady growth in the Northern Ireland housing market".

“The report provides further evidence of steady, balanced growth from the low point of early 2013, with residential property prices now showing an increase of 7 per cent over the last four quarters. Analysis from the most recent quarter shows that prices increased by 3 per cent.

“The increasing confidence of buyers in the market is also demonstrated by the rising level of transactions. Over the last twelve months there have been almost 17,500 transactions,” the minister said.

Richard Ramsey, Ulster Bank's chief economist in Northern Ireland said the rising number of property sales is "encouraging" for the local housing market.

“Transactions are now 85 per cent higher than they were five years ago, but remain almost 60 per cent below their freak peak in 2007. However, a return to this ‘freak peak’ is neither expected nor desired. Instead a return to more ‘normal’ levels of activity that we would have seen around 2005 would be desirable. This is 40 per cent above where transactions currently are,” Mr Ramsey said.

According to one local independently owned estate agent there is definite signs of live in the local market when it comes to demand for certain properties.

Reeds Rains says it has seen an increase in the number of sales handled by their estate agencies.

Ryan Andrews, director of Reeds Rains, Northern Ireland said: "Over recent months we've seen a 22 per cent increase in homes coming on the market with a 26 per cent increase in sales. Put simply we need more homes to satisfy this significant upturn in demand.

“There is a renewed confidence in the marketplace and the Government figures coupled with our own represent great news for home buyers, sellers and the wider economy.”