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Property prices take the biggest tumble in the UK

By Helen Carson
Wednesday, 7 January 2009

Northern Ireland house prices fell by 34.2% last year — the biggest drop in the UK, it has been revealed.

The latest figures from the Nationwide House Price Study for the fourth quarter of 2008 also shows property in the province took the biggest hit with prices plummeting by 7.4% during that period — again a national high.

Despite the downward spiral though the average house price here of £147,833 is the sixth highest in the UK, being outstripped by London (£257,963), Outer Metropolitan (£218,150), Outer South East (£181,477), South West (£172,789) and East Anglia (£153,080).

It is, however, lower than the UK average of £156,828 which is also down by over 14% in 2008.

And while Belfast is still the most expensive part of Northern Ireland to live in with an average house price of £203,942 — down 33% on last year — it also tops the poll as the city with the greatest fall in property values nationally.

Fionnuala Earley, Nationwide’s chief economist, said: “The correction in prices in the province is perhaps less surprising when looking at the enormous rates of growth here in 2006 and 2007.”

Paddy Palmer, director of Templeton Robinson Estate Agent, said: “Prices are levelling out now. Falling prices are not a new situation, this has been happening for 18 months.”

“We did see a small uplift in transactions last December and are confident there will be more buyers in the marketplace this year.”

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26 Comments

Actually, I thought that picture of Dave in the dictionary looked rather dishy!

I also looked up the definition of FUBAR.

- Says it all, really.

Posted by Iona Fortune | 13.01.09, 08:58 GMT

I see there's still some BTLr's out there trying to really F.U.B.A.R. the housing market!

Posted by Buffert T. Justice | 08.01.09, 16:15 GMT

Fubar you're not doing yourself any favours.

Schoolyard insults clearly mean you have no meaningful counter-argument.

As for the other property bulls who have commented here (PAUL, Robert, Andy), your lack of willingness to make any kind of market prediction says more than any of your posts.

Posted by Dave | 08.01.09, 15:28 GMT

My quote did not predict a future house price, merely my thoughts on the market.

I just looked up a dictionary and beside "Idiot" theres a picture of a guy called Dave is that you?

Posted by Fubar | 08.01.09, 12:53 GMT

Yawn.

Think we have flogged this one to death.

Here's my prediction...houses will go down and up / up and down over the next 20 years.

I also predict that if you buy a car...it will depreciate in value.

Posted by GB | 08.01.09, 11:51 GMT

What exactly does the word fubar mean?

Has anyone considered this rather salient point yet?

Posted by Phil Officer | 08.01.09, 11:37 GMT

How is making a prediction about anything being "an idiot"? If I am right, am I still an idiot? What is your best guess? Or are you too afraid to think about it?

Yesterday you said, and I quote, "I think house prices are at the bottom anyway and think the market will start to move on its own."

Is that not a prediction? Does that make you an idiot too?

Posted by Dave | 08.01.09, 10:00 GMT

You would be an idiot to predict the future price of the housing market in todays climate.

Interest rates are low and heading lower, property looks a better investment than most. Commodities are in there own bubble at the moment as investor take cover in safer stock.

Your prediction of £108k is an example of your ignorance, it equates to £30,800 p/a income based on 3.5 x average income or 4.3 x income based on £25K p/a.

Buy a house to live in and your in a better position, lose your job and the government will help with interest payments up to a mortgage value of £200k for 2 years, will you landlord do the same?

Posted by Fubar | 08.01.09, 09:21 GMT

Let's have some predictions for 2009 and onwards here. We can all look back and have a laugh. I reckon according to Halifax/Nationwide/DCLG Northern Ireland will be down 48 % from peak (about August 2007) by the time the figures for December 2009 come out. 2010 will be much easier on the property bulls- I think maybe only single figure falls. By December 2010 I think house prices will be about 55 % down from peak putting them around £108,000. Obviously in real terms factoring in inflation (or maybe deflation) the figures may be a touch higher or lower. Come on Fubar, PAUL, Robert, Andy. Let's hear your thoughts.

Posted by Dave | 08.01.09, 06:42 GMT

Agree with you Andy: "Isn't it amazing how many experts have appeared since the crash in house prices".

Not one predicted the lowest interest rates in history with further cuts to come. Six months ago interest rates were predicted to rapidly rise to combat inflation and the experts told us oil would be $200 a barrel.
These "experts" have no idea what will happen in the future never mind a few sheeple spouting what the future price of a house will be. Boom follows bust get ready for it.

The value of an ex-council house is under pinned by housing bennefit payment, i'm sure you smart sheeple will be able to work out how that leaves a 3 bed semi in a nice area.

Louie: with 14k p/a you may get a better job or be content with renting.

Posted by Fubar | 07.01.09, 23:36 GMT

Like it or not,after a crash,prices go back up,it may be 2 years or 5 years or whenever,we will look back at 08/09 and say that was the time to buy.

Posted by PAUL | 07.01.09, 17:34 GMT

How is it that everybody, except one "buy to let is the way to go" insane person is saying the opposite of the estate agents? Average price is about 7 times average houshold income....... 3 and a half is the right price. A house i bought 20 years ago for 30k went to £280k and will have to come down to about £140k before it will sell. Almost everyone who bought since August 2004 is in negative equity.

Posted by Patrick | 07.01.09, 17:20 GMT

These figures relate to 2008 only which don't take account of the falls that had taken place in the 2nd part of 2007. Once this is factored in, surely prices have fallen by at least 40% from peak, up to 45%? A quick look on propertynews.com however tells a different story of pricing that bears absolutely no resemblance to this reality.

Also, we in NI were first to experience the unsustainable boom, so we are the first to see the big falls, which means that we are 6-9 months ahead in terms of what is predicted for GB as a whole which is expected to bottom out late 2009. Therefore, if they are going to fall 50% here, the bottom would be soon. Very soon.

Posted by Robert | 07.01.09, 16:08 GMT

Isn't it amazing how many experts have appeared since the crash in house prices. As many predicting complete bust, as were predicting a never ending boom a couple of years ago.
Nothing will happen in the market until the banks start lending again. Hopefully a little more responsibly than in the past. As soon as the market wakes up prices will rise, albeit probably a bit more cautiously than in the recent past.
As for the ratio between average earnings, fair point, however if we look at the negative equity problem experienced in London for example in the late 80s, we see that as soon as the market readjusted and strarted again, prices took off. Admittedly London has a more robust economy than NI but people do not learn, it will all happen again...

Posted by Andy | 07.01.09, 15:14 GMT

Ha ha, Fubar the estate agent / mortgage advisor / property developer.

Posted by Plum | 07.01.09, 14:40 GMT

Donall are you telling us that the average salary in N Ireland is £25,000?

I wish I had your problems, mine is fourteen grand!

Posted by Louie | 07.01.09, 14:15 GMT

Asking prices are probably levelling out. Selling prices are crashing.

Posted by Dave | 07.01.09, 13:42 GMT

I have worked in the property market for a number of years and the simple reality is that houses are grossly over-inflated. Economists have been warning of this eventuality for several years. The banking system went crazy with their lending and now we are all going to pay. The government didn't intervene to cool the market when it was overheating and now have to pick up the mess.
We have been here before in the past and never learn.

House prices in NI will definitely fall by at least 50% from their 2007 peak.
The will then begin to rise but at a slow pace.
It is difficult to predict when exactly they will level off but it is still some time off!

Posted by Terry | 07.01.09, 13:31 GMT

“Prices are levelling out now". This seems to be the case, from my research I feel now is the time to buy. Buy to Let is the way to make some easy money.

Posted by Fubar | 07.01.09, 13:08 GMT

As NI took the biggest leap then NI will take the biggest fall.
The bigger they are the harder they fall - and the Biggest has yet to come.

Have a look at Property News website - there hasn't been a single change in it for months and months, just the same boring stagnant old lot, trying desperately to hang onto that proverbial bubble which burst ages ago.

Properties are now worth a mere fraction of what they're listed at, and as the carrying cost of owning one just keeps getting higher and higher, these outlandish prices are a distant memory. It's time some people caught themselves on.

Posted by Sweet Fanny Adams | 07.01.09, 12:45 GMT