Leading Northern Ireland estate agents say prices have been cut on up to 90% of their stock.

And the estate agents said the move is bringing buyers back to the beleaguered local property market.

Financial institutions are now the main obstacle for first-time buyers, it was claimed.

And despite a tough year for the housing market, both BTW Cairns and Templeton Robinson have had notable sales during July.

Simon Brien, director at BTW Cairns, said: “We have had our best sales period in the last few weeks which is quite something over the 12th holiday and a difficult market. We are quite surprised to have so many sales.”

The estate agent sold two large properties recently for £2.4m each — one in Upper Malone and the other at Foxleigh Hall, Lisburn, both of which attracted several bidders.

Developers have reduced their prices so much they are practically at cost

Mr Brien agrees lower prices are bringing buyers back: “We have definitely seen a lot more activity at the lower and middle end of the market. Developers have reduced their prices so much they are practically at cost — they can’t go much lower.”

And affordable prices have proved a winning strategy at BTWCairns’ Gardiner Square scheme on the Shankill Road/Peter’s Hill were 40 new homes were sold in five days. Prices here range from £90,000 for a one-bedroom apartment and £110,000 for a two-bedroom property.

Thaxton Village in Lisburn has also proven popular with up to five sales a week. The homes here are also keenly priced from £185,000, according to Simon.

“The summer has been the time people have stopped sitting on their hands waiting for prices to fall further,” said Simon. “They feel there is value in the market and now is the time to go forward and buy.”

He added: “It is more difficult now to get a mortgage now than six months ago, but banks are working on new products and there may be funding possibilities for Co-Ownership which will help first time buyers.”

Michael Young of Templeton Robinson remains upbeat.

He pointed out prices have fallen with sales being agreed some £20,000-£30,000 beneath the asking price: “Vendors are prepared to take a lower offer as long as they can afford the next house they are buying,” he says.

“There are bargains to be had. One seller has reduced the price of his King’s Road property from £600,000 to £450,000 — that has got to be a bargain.”