Northern Ireland is the strongest performer for annual house price growth

The average house price in Northern Ireland is £182,565

By PA Reporter
Friday, 6th May 2022, 10:00 am
Updated Friday, 6th May 2022, 10:03 am

Northern Ireland is the strongest performer for annual house price growth at 14.9%, according to an April index.

However the average NI house price, £182,565, remains some way short of its record of £230,931, set in the summer of 2007, Halifax have revelaed.

Overall the average UK house price increased by more than £3,000 in April, in the longest run of monthly rises since 2016 with the average property value rising by 1.1% or £3,078 last month.

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NI house prices

Russell Galley, managing director of Halifax, said: “This was the 10th consecutive month that property values have increased, the longest run of continuous gains since the end of 2016.”

The typical house price was a new record of £286,079 – an annual increase of 10.8%.

At the current rate of growth, the price of a typical home could hit £300,000 by the end of the year, but Halifax said that remains unlikely given the economic conditions predicted.

Prices have increased by £47,568 on average over the past two years, the report said.

It took the previous five and a half years to make an equivalent leap, with values increasing by £47,689 on average between October 2014 and April 2020.

Mr Galley said: “The imbalance between supply and demand persists, with an insufficient number of new properties coming on to the market to meet the needs of prospective buyers and strong competition to secure properties driving up prices.

“There remains evidence that this demand is centred on larger family homes rather than smaller properties such as flats. Over the past year, prices for detached and semi-detached properties have risen by over 12%, compared to just 7.1% for flats.

“The net cash increase for detached properties, at just under £50,000 over the past year, is nearly five times more than for flats.”

House prices have continued to climb despite the cost-of-living crisis putting a financial squeeze on households.

Inflation is expected to hit 10%-plus in the coming months and the Bank of England raised the base rate to 1% this week, pushing up costs for some borrowers.

Mr Galley continued: “The headwinds facing the wider economy cannot be ignored. The house price-to-income ratio is already at its highest ever level, and with interest rates on the rise and inflation further squeezing household budgets, it remains likely that the rate of house price growth will slow by the end of this year.”

Six out of nine English regions recorded double-digit annual house price inflation during April.

However, average property values in London remain much higher than the rest of the UK, with the latest average price of £537,896 also a new record for the city, Halifax said.

Here are average house prices in April followed by the annual increase, according to Halifax:

– East Midlands, £237,466, 12.8%

– Eastern England, £334,570, 11.9%

– London, £537,896, 6.2%

– North East, £163,431, 8.9%

– North West, £217,199, 10.7%

– Scotland, £196,471, 8.3%

– South East, £390,095, 12.1%

– South West, £301,632, 14.8%

– Wales, £214,396, 14.2%

– West Midlands, £241,632, 10.4%

– Yorkshire and the Humber, £197,955, 10.3%