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Northern Ireland house prices up 11% in 12 months as average UK costs hits new record high


The average UK house price hit a new record high in June but there are ‘tentative signs of a slowdown’, according to an index (Anthony Devlin/PA)

The average UK house price hit a new record high in June but there are ‘tentative signs of a slowdown’, according to an index (Anthony Devlin/PA)

The average UK house price hit a new record high in June but there are ‘tentative signs of a slowdown’, according to an index (Anthony Devlin/PA)

The average cost of a home in Northern Ireland has reached £181,550, according to Nationwide Building Society.

It comes as the bank's index revealed average UK house prices hit a new record high in June but there are “tentative signs of a slowdown”.

Prices across the UK were up by 10.7% in June, slowing from 11.2% in May, Nationwide Building Society said. Northern Ireland’s average house price increased by 11% - similar to the previous quarter.

Across the UK, the average house price in June was £271,613, up by 0.3% month on month.

Robert Gardner, Nationwide’s chief economist, said average house prices increased by over £26,000 in the past year.

However, with the number of mortgages approved for house purchases falling back towards pre-pandemic levels in April and surveyors reporting some softening in new buyer inquiries, Mr Gardner said the price rises could slowdown.

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“Nevertheless, the housing market has retained a surprising amount of momentum given the mounting pressure on household budgets from high inflation, which has already driven consumer confidence to a record low,” he continued.

“Part of the resilience is likely to reflect the current strength of the labour market, where the number of job vacancies has exceeded the number of unemployed people in recent months.”

The market is expected to slow further as pressure on household finances intensifies in the coming quarters.

Mr Gardner said that, at the same time, the stock of homes on the market has remained low, keeping an upward pressure on house prices.

Looking across the UK, Mr Gardner said quarterly figures showed a softening of house price growth in many regions in the three months to June.

“The South West (of England) overtook Wales as the strongest-performing region in quarter two, with house prices up 14.7% year on year, a slight increase from the previous quarter.

“This was closely followed by East Anglia, where annual price growth remained at 14.2%.

“Wales saw a slowing in annual price growth to 13.4%, from 15.3% in the first quarter.

“Price growth in Northern Ireland was similar to last quarter at 11.0%. Meanwhile, Scotland saw a 9.5% year-on-year rise in house prices.

“There was a slowing in annual house price growth in England to 10.7%, from 11.6% in the previous quarter.

“While the South West was the strongest performing region, overall southern England saw weaker growth than northern England.

“Within northern England, the North West was the strongest-performing region, with price growth picking up to 13.3% year on year, from 12.4% in the first quarter.

“London remained the weakest-performing UK region, with annual price growth slowing to 6.0%, from 7.4% in the previous quarter.”

Gabriella Dickens, a senior UK economist at Pantheon Macroeconomics, added: “We expect house prices to drop by around 2% in the second half of the year, pushing down the year-over-year rate to around 2% by the end of the year.”

Here are average house prices in the second quarter of 2022 followed by the annual increase in prices, according to Nationwide Building Society:

– South West, £318,325, 14.7%

– East Anglia, £289,024, 14.2%

– Wales, £208,309, 13.4%

– North West, £213,888, 13.3%

– West Midlands, £244,167, 11.8%

– Yorkshire and the Humber, £205,714, 11.8%

– East Midlands, £234,828, 11.4%

– Outer South East (includes Ashford, Basingstoke and Deane, Bedford, Braintree, Brighton and Hove, Canterbury, Colchester, Dover, Hastings, Lewes, Fareham, Isle of Wight, Maldon, Milton Keynes, New Forest, Oxford, Portsmouth, Southampton, Swale, Tendring, Thanet, Uttlesford, Winchester, Worthing), £348,564, 11.1%

– Northern Ireland, £181,550, 11.0%

– North East, £159,283, 10.6%

– Outer Metropolitan (includes St Albans, Stevenage, Watford, Luton, Maidstone, Reading, Rochford, Rushmoor, Sevenoaks, Slough, Southend-on-Sea, Elmbridge, Epsom and Ewell, Guildford, Mole Valley, Reigate & Banstead, Runnymede, Spelthorne, Waverley, Woking, Tunbridge Wells, Windsor and Maidenhead, Wokingham), £433,558, 10.0%

– Scotland, £181,422, 9.5%

– London, £540,399, 6.0%

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