Detached homes see steepest rise in price over last year
Detached homes in Northern Ireland have seen the steepest rise in price of all house types over the last year to hit an average of around £210,000, according to a report.
And lack of supply is expected to push up prices for homes of all kinds, after a 4% increase in the last year.
The government research into Northern Ireland housing market activity over the third quarter said that there were 6,002 homes sold over the first nine months of the year.
However, that was down from 6,563 over the first nine months of last year. And people were spending just under five times the average salary on a home - though at the time of the peak in the market, they were forking out nine times the typical salary on a home.
Over the year, the price of a detached house soared by 4.8%, while the price of a semi-detached increased by 4.5% to £135,601.
Terrace increased in price by 2.7% to £98,102, while apartments rose in price by 3% to around £109,000.
Across the board, there was an average house price increase of 4% to an average of just under £140,000. Prices had also grown by 2.3% over the last quarter.
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Overall, prices have recovered by 26.1% since the early 2015 – with 10 out of 11 district council areas showing an increase over the latest quarter.
But there is a wide range of average prices across district council areas, from £120,11o for the cheapest location in Derry City and Strabane, to £164,900 for the most expensive area of
Lisburn and Castlereagh.
Ulster Bank chief economist Richard Ramsey said prices were still around 38% below their “freak peak” of 2007, which was followed by a prolonged property crash.
However, he said that the latest rate of quarterly growth at 2.3% was the highest since 2016 – and prices were now approaching a 10-year-high.
And he said he expected house prices to continue to go up, mainly due to a lack of supply.
That was mainly down to a slowdown in the number of new homes being built, with work starting on 5,552 new homes in the first nine months, down 18% over the same period a year earlier.
He said that slowdown was a result of the slowness of planning decisions and a lack of new sewage infrastructure.
Mr Ramsey added: “Following a decade of under-building, Northern Ireland was finally getting close to building the required number of housing units per year (estimated 8,500 – 9,000 p.a.). “However, with housing starts on the wane again the period of under-building looks set to continue.
“The significance of this is most likely to impact on prices. Prices are a function of supply and demand.
“With the supply of housebuilding set become more restricted, this will provide support for residential property prices.”
And he said that the rise in the private rental sector meant that house prices were no longer as relevant an economic measure as they once were.
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