Prospects to Improve for First Time Buyers, says RICS

NI House price growth negative for third month

18th Nov 2007

Northern Ireland chartered surveyors reported a fall in house prices for a third consecutive month in October. The RICS (Royal Institution of Chartered Surveyors) housing market survey for Northern Ireland, which is sponsored by Ulster Bank, revealed that 71 per cent of chartered surveyors contributing to the index recorded price decline. Meanwhile 29 per cent said that prices remained the same.

RICS Northern Ireland housing spokesman, Tom McClelland, says: "RICS has reported house price decline across the UK. This slowdown was expected due to interest rate hikes in the earlier part of the year and the credit market turmoil. However if interest rates are cut early next year as many are predicting, market sentiment could well change for the better."

"Northern Ireland saw phenomenal house price growth for two years. This growth led to a huge price spike and market disorder associated with volatility. When investors left the market after the credit crunch a period of slowdown was inevitable as the market was at a level that could not be sustained by first time buyers. Changing market conditions provide opportunities for first time buyers to get a foothold in the market. Growth in first time buyer activity could pick up a lot of the slack in the market, particularly if interest rates are cut and asking prices reflect the new reality," Mr McClelland adds.

Ulster Bank Head of Mortgages, Derek Wilson, adds: "Strong local economic conditions and record employment will cushion the housing market which is in a period of transition after the massive growth of the last couple of years. Many are predicting a pick-up in sentiment come early next year when there could be an improvement in confidence in the Spring after the traditional end of year lull and once the money markets have stabilised."

29 per cent of chartered surveyors reported that house prices in Northern Ireland remained the same in October. 20 per cent said that prices fell by 2 per cent of less. 14 per cent said that prices fell by between 2 per cent and 5 per cent. 16 per cent said that prices declined by between 5 per cent and 8 per cent and 21 per cent said that prices fell by 8 per cent or more.