House prices in Northern Ireland from March to June were 9% higher than the same time last year, according to official figures.

It is the biggest annual rise since 2007 and the biggest quarterly increase since 2016.

The housing market was effectively paused between March and June 2020 because of lockdown, which caused a build up of demand.

The average price for a house in Northern Ireland is £153,449.

It ranges from £134,091 in the Armagh City, Banbridge and Craigavon Borough Council area to £180,067 in Lisburn and Castlereagh City Council.

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The Causeway Coast and Glens Borough Council area was the area which had the biggest annual rise in prices, up almost 17%.

Between March and June this year, 7,187 residential properties were sold, according to the latest from Northern Ireland Statistics and Research Agency.

Knock-on effects

Prof Paddy Gray, a housing expert at Ulster University, said the rise of prices was good news for some but could force others into sub-standard housing.

He said the price rises would have knock-on effects for first-time buyers and renters.

“House price rises create confidence for the people who already own,” he said.

“You think the economy is improving but there is an element of people who just can’t afford to get on the property ladder and those people need to be looked after and looked after with accommodation they can afford.

“We still have so many thousands on the waiting list for social housing, the rents are going up as well in the private rental sector and people may need to move into cheaper, sub-standard housing as a result.”

Northern Ireland’s house prices may be the lowest in the UK but that does not necessarily make them affordable for the people who live there, he said.

Prof Gray said people moving home from other UK cities with higher wages could price out local buyers.

“Not only would it restrict what was available locally but as people will move into an area, it will push up the prices so that’ll push people out further,” he said.

‘Manic’ market

Judith Gilchrist, a director with an estate agency, said the last quarter had been “manic”.

“A semi-detached house in Bangor that went on the market this week got an offer £10,000 above the asking price overnight – and 16 viewers were already lined up, she said.

“We’ve had a frantic past three months – every time you put a house on there could be 20 viewers immediately and, all of a sudden, out of those 20 there’s about five bidders.

 

image captionJudith Gilchrist says she feels sorry for people in the market for a house

“I feel really sorry for purchasers at the moment trying to find a house.”

She said the pandemic had given some buyers more disposable income, driving up demand and prices.

“People have been saving up, not going on holiday and have been bored of their own four walls so upgrading is probably the best option.

She added: “People who normally have roots in Northern Ireland are coming back to be with their family.”

 

 

 

 

 

Article sourced from BBC on 18^th August 2021. Original full article can be viewed by clicking link below

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