House prices in Northern Ireland 40% lower than the UK average

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House prices in Northern Ireland are 40 per cent lower than the UK average, according to the latest housing and economic outlook published by PropertyPal.

The report showed that there are more than 80 locations in Northern Ireland where median property prices are under £100,000 with the median house price standing at £134,200 overall.

Cultra and Malone are the most expensive areas to buy a home in the province with median property prices in these areas costing over £400,000.

The figures were released as part of new research series which includes 13 publications: Housing and Economic Outlook, Residential Housing Review and 11 individual council reports.

House prices grew 3.6% last year, and “assuming” a soft Brexit arrangement, are forecast to grow by 2.9% this year, 3.6% next year and continuing to increase between 3.0%-4.0% until 2023.

The top five most popular locations to buy a home last year were in Carrowreagh (just outside Dundonald - with almost 180 homes sold), Windsor (171), Bloomfield (137), Connswater (126) and Craigavon (125).

Meanwhile, the economy is forecast to grow by 1.2% this year, 1.3% next year and between 1.5%-2.0% until 2023.

It has also been predicted that 21,500 new jobs are forecast to be created in Northern Ireland by 2023, with approximately two thirds requiring full-time workers.

Jordan Buchanan, chief economist at PropertyPal, commented: “The Northern Ireland economy has been performing particularly well in recent years despite an increasingly challenging backdrop.

“Firms have been hiring at record rates, economic inactivity is falling, unemployment is exceptionally low by historical standards and amongst the lowest of any advanced nation in the world.

“However, the outlook remains cautious with many forward leading indicators suggesting the local economy is close to a recession.”

“Since 2012 there have been an impressive 95,000 jobs created, equivalent to over 37 new jobs per day and to date, there are more people in work than there were at peak levels in 2008. The latest employment rate is at record highs of 71.7% alongside a low unemployment rate of 3.1%. This in turn is supporting household finances and helping aspiring homeowners save towards their deposits.”

“Today the median house price in Northern Ireland stands at £134,200, 29% below the highs of 2007 and over 40% lower than the UK average (though a more sensible comparison is 34% lower that Great Britain excluding London).

“Until a Brexit deal is secured, economic and political uncertainty will restrain buyer sentiment. The UK wide housing market will remain price sensitive and beyond that, depending on what deal is agreed, will have an impact on the path of interest rates, wage growth and house prices.”

Mr Buchanan added: “Ongoing affordability, pent up demand, a low interest rate environment - with competitive mortgage deals - and an increasingly tight labour market, with real wage growth, should support house price growth in the coming years.”