Property prices in North to remain vibrant

The North's residential property market is expected to remain vibrant in the coming year, according to the University of Ulster…

The North's residential property market is expected to remain vibrant in the coming year, according to the University of Ulster and Bank of Ireland.

They have combined to produce the latest quarterly house price index which shows growth of 6.3 per cent in the third quarter of 2002 and an increase of 15.25 per cent for the year as a whole.

The average house price in the North is now just under £100,000 and under 10 per cent of properties are priced below £50,000.

The latest rise was higher than forecast and prices are now deemed relatively expensive. However, with mortgage rates at a 40-year low and cut-throat competition in the lending sector, market observers are confident that prices will continue to rise, if a little more slowly, in 2003.

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Mortgage payers are now spending a smaller portion of their income on repayments than they were 10 years ago.

The strongest price growth was in the apartment and terraced house sectors with growth rates of 21.97 per cent and 20.84 per cent respectively.

The semi-detached sector was the slowest-moving, with houses rising 9.75 per cent and 5.11 per cent for houses.

The survey also found that south Belfast was the most expensive area in the city with an average price of more than £158,000.

Outside Belfast, Lisburn, Co Antrim, was the most expensive area, while Craigavon, Co Armagh, was the cheapest.

Prof Stanley McGreal of the University of Ulster said: "This report confirms the high level of confidence within the Northern Ireland housing market." He added that the rises mirrored those in Britain. He described the market as "extremely vibrant".

Mr Alan Bridle of Bank of Ireland referred to the affordability of property.

"When considered on a price/earnings ratio, house prices are beginning to look expensive.

"However, when looked at on the basis of affordability, i.e., the annual cost of servicing a new mortgage relative to income, there appears to be little cause for concern."

A survey published last week by the Nationwide building society found that prices in Northern Ireland rose by more than 16 per cent in 2002, an average rise per unit of £42 per day.

The rise for the whole of the United Kingdom was 25 per cent.

It forecasts slower growth in 2003, but still expects rises to top the 10 per cent mark.