HOUSE PRICES are continuing to fall in Northern Ireland according to a new survey from an industry body representing chartered surveyors.

The Royal Institution of Chartered Surveyors (RICS) says the prospect of large public spending cuts in the North is overshadowing any hopes of a recovery in house prices which have fallen by more than 30 per cent since a short-lived pre-recession boom in 2007.

The average house price in Northern Ireland, according to the most recent Nationwide House Price Index, is in the region of £128,846.

The new RICS housing market survey published today shows a high degree of “uncertainty” in the local market over the last three months.

Although the combination of low interest rates and lower house prices has made property more affordable, prospective home owners are finding it more difficult to get the finance.

It is estimated that property prices are typically around 4.25 times average annual earnings.

According to Tom McClelland, RICS Northern Ireland spokesman, there are some positive indicators emerging in the local market, including the fact that transaction levels have increased “to some degree”.

But Mr McClelland said this comes down to the houses that “are priced properly”.

“In some areas and sectors we believe that prices have come down as much as 60 per cent from peak levels, attracting first time buyers and investors,” he said.

Mr McClelland said when the UK’s budget takes complete effect it will tell on local property prices. “There is no doubt the . . . prospect of large cuts to come will . . . have implications for the housing market,” he said.