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Shortage of homes drives average price to £183,000

NI houses 5% more expensive than in previous quarter, PropertyPal report finds

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Research carried out by website PropertyPal, based on the sale of houses and apartments advertised on its site, found the average house had gone up in value by 5% to £188,400. Stock image

Research carried out by website PropertyPal, based on the sale of houses and apartments advertised on its site, found the average house had gone up in value by 5% to £188,400. Stock image

Research carried out by website PropertyPal, based on the sale of houses and apartments advertised on its site, found the average house had gone up in value by 5% to £188,400. Stock image

The average price of a home in Northern Ireland climbed by 5% to reach £183,700 during the first few months of the year, a report has found.

Homes were also selling more quickly, with the time between a property being advertised and becoming ‘sale agreed’ narrowing from 57 days to 43 days.

Research carried out by website PropertyPal, based on the sale of houses and apartments advertised on its site, found the average house had gone up in value by 5% to £188,400.

But the average price of apartments climbed by the slightly smaller rate of 4.7% to reach £137,900.

On a quarterly basis, the price of houses was up 1.7% compared to the last quarter of 2021, while the price of apartments had grown by 0.7%.

PropertyPal said there had been an additional 7,542 new properties available to buy between January and March, which was down 17% on early 2021.

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The decrease reflects a tightening of supply of homes to buy, a factor which was pushing up prices, PropertyPal’s chief economist Jordan Buchanan said.

However, he said activity in the market had slowed down, while wider economic factors were also at play.

Mr Buchanan explained: “The opening quarter of 2022 has shown continued momentum in the market performance, albeit activity and prices have cooled considerably compared to last year.

“An ongoing shortage of available properties will provide upward pressure on prices whilst demand remains strong, but headwinds are abound within the economic climate.

“The rising cost of living, higher mortgage rates and squeezed affordability, alongside a weaker economic outlook, suggest price growth will continue to moderate later in the year.”

All council areas around Northern Ireland showed an increase in prices during quarter one with the exception of Belfast, where prices fell by 0.5% during the quarter to hit £193,200.

Armagh, Banbridge and Craigavon reported the biggest quarterly increase of 2.6% to hit an average of £158,400.

Causeway Coast and Glens reported the highest year-on-year price growth at 12.5% to hit an average of £189,300.

The next highest growth was in the Mid and East Antrim district, where prices had increased 11.2% to reach an average of £166,000.

Fermanagh and Omagh had the cheapest houses, at £151,400 on average, following growth of 7.5% year on year.

And Mid Ulster was the second cheapest location to buy a home, with an average price of £156,700 reflecting growth of 7.8%.

Newly built homes were showing the biggest price growth, with a 14% annual increase to £211,000 across houses and apartments.

A new-build house was costing £213,100, a 13.6% increase and more than double the price growth on existing houses.

New-build apartments have also increased by 23.4% since 2021. Now, the average new-build apartment in Northern Ireland costs £191,600.

The report by PropertyPal also found significant growth in rental prices.

Across Northern Ireland, the average price of a rented home was £711, up 5.8% over the year — a higher growth rate than seen on purchase prices.

However, houses were more affordable to rent per month, at £708, while apartments were slightly more expensive at an average of £715 per month.

The annual rent growth of both houses and apartments has also increased to 7.3% and 3% respectively.

Mr Buchanan said rental market pressures were at “unsustainably high levels”.

“Rent inflation continues to outstrip wage growth and affordability pressures are growing, particularly for low to mid-income households, as cost-of-living pressures take hold and are compounded by real-term cuts to government support.

“The market dynamics continue to be driven by a significant supply shortage against a large pool of competing tenants, with overall demand more than double pre-pandemic levels.”


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