Peace process thought to have assisted prices
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Affordability prime concern in Northern Ireland
Friday, 06 Jun 2008 09:18
Affordability remains the biggest single concern for would be buyers in the Northern Ireland property market, according to the Council of Mortgage Lenders (CML).
Data from the Department for Communities and Local Government show the average house price in Northern Ireland is presently £217,413.
This is slightly above the UK average of £217,344, but well ahead of the £88,062 recorded as recently as February 2002.
In June 2007, annual house price inflation in the region stood at an incredible 55.9 per cent. Yet this boom has now passed, with prices now falling in some areas.
The Irish peace process, along with resultant Devolution and establishment of a power sharing executive, and a booming economy have all bolstered the market in recent years.
However, this has moved property prices out of reach for many.
"Affordability continues to be the dominant housing issue in Northern Ireland, along with housing supply," said CML Northern Ireland chairman, Trevor James.
"The CML has worked closely with the Department of Social Development to provide housing associations greater access to private finance."
Mr James, area manager at Progressive Building Society, was addressing an audience in Belfast this week, having replaced Derek Wilson, head of mortgages at Ulster Bank, as head of the organisation.
"While affordability remains the biggest issue, helping those people that are having difficulty with mortgage payments remain in their homes is perhaps of equal importance," continued Mr James.
"The most important step for anyone who finds themselves in this position is to contact their lender as soon as possible; we will do what we can to assist you."
CML data finds the average first-time buyer income multiple in Northern Ireland is 3.49, as opposed to 3.36 in the UK as a whole.
Furthermore, the CML finds there were 18,200 loans for house purchase in Northern Ireland in 2007, a 33 per cent decrease from 27,100 in 2006 - the lowest level since 1981.
Chris O'Toole