Housing market continues to show strength as government data reports another uplift

Northern Ireland’s housing market has continued to show its strength after latest government figures revealed another uptick in prices in the first quarter of the year.

Average house prices here climbed by 4% in the three months to the end of March to £178,499 compared to the same period last year, according to Land & Property Services (LPS) and the Northern Ireland Statistics and Research Agency.

Its data is considered the most accurate given it uses stamp duty information recorded by HMRC. It concurs with recent surveys from Ulster University, PropertyPal and Nationwide while also reported an uplift.

According to the LPS, all council areas in Northern Ireland recorded an annual increase apart from Causeway Coast and Glens which has witnessed a fall of 4% over the last year to £186,677.

That slide may be a correction from the sharp increase in prices in the region during and in the aftermath of the Covid-19 pandemic when demand spiked for second homes and from those able to work from more remote locations.

Other council areas of Northern Ireland have enjoyed a solid increase, with Ards & North Down reporting the highest hike of 8.6% on an annual basis to £208,114, while Mid Ulster was up 7.9% to £176,072.

Underpinning the market remains a lack of supply, as evidenced by the fact the first quarter of this year saw a fall in the number of transactions once again, this time to a lowest level for nine years. Helping to ease that tightness is the fact housing completions and housing starts have increased but, with demand remaining strong, commentators have said the market remains well supported.

While the latest increase shows strength in Northern Ireland property, it is worth noting that prices still remain over 20% below their peak in 2007 just before the well-publicised credit crunch.