NI house prices 'up 9.6% on same period last year'

House prices in Northern Ireland continued to rise sharply in the second quarter of 2022, official figures show.

Prices rose by 3.2% from the first quarter and were up 9.6% compared to the same period a year ago.

There were quarterly increases in all council areas, ranging from 0.6% in Fermanagh and Omagh to 5.2% in Ards and North Down.

The average price across all property types was £169,063, 20% higher compared to the average pre-pandemic price.

The figures are from the Northern Ireland Residential Property Price Index, which analyses almost all sales, including cash deals.

All property types saw increases over the quarter: detached by 4.2%, semi-detached properties by 3.4%, terraces by 2.0% and apartments by 2.5%.

In cash terms, average prices are now roughly where they were in the middle of 2008 but still well below the peak price of £225,000 at the height of the bubble in 2007.

Ulster Bank economist Richard Ramsey said a lack of new stock had helped drive prices.

He points to housebuilding statistics which show new house completions were down almost 12% year-on-year in the second quarter of the year with new housing starts down by 16.4%.

But he cautioned that the price growth seen since the pandemic is "extremely unlikely" to be repeated over the next couple of years.

"The cost of living crisis, interest rate hikes, tax rises and declining consumer confidence are major headwinds that will hit the housing market," he said.