Growth in NI house prices starting to slow

Findings from the university’s Quarterly House Price Index show that despite a further quarter of consecutive house price growth, rising consumer costs and interest rates are resulting in the continued squeeze on household budgets. The research shows that this has begun to impact market activity with a third of estate agents reporting a reduction in new inquiries within selected market areas between the first three months of the year and the next three months.

The report also found that while 86% of agents anticipate prices either remaining largely the same or having ‘softer’ price inflation over the next three months, the Northern Ireland housing market is approaching a peak in activity.

Demand and recurring supply challenges remain, however the longer-term picture projects a fall in transaction levels, with inflationary pressures and rising consumer costs expected to have a greater impact upon the local housing market.

The Quarterly House Price Index, produced by Ulster University in partnership with the Northern Ireland Housing Executive and Progressive Building Society, analyses the performance of the Northern Ireland housing market during the second quarter of 2022 (April-June).

The average house price stands at £205,628.

Lead researcher Dr Michael McCord said: “The housing market this quarter continues to show signs of price growth though at a rate which is diminishing relative to both quarterly and annual prices changes seen since the end of the lockdown periods.”

l Morning View, page 16