Recovery in North's house market 'patchy and uneven'

A FALL in house sales in the North during the first three months of the year suggests any recovery in the local market is “patchy and uneven”, according to the latest industry research.

Average house prices in Northern Ireland rose slightly in the first quarter to £169,497 (€198,000) compared to £161,429 in the final quarter of 2009.

But the number of house sales fell from more than 1,000 in the closing quarter of last year to just 800 in the first three months of 2010.

The research, contained in the latest University of Ulster Quarterly House Price Index, which is produced in partnership with Bank of Ireland and the Northern Ireland Housing Executive, shows that the local market is becoming increasingly influenced by the private rental sector.

Bank of Ireland economist Alan Bridle said owner-occupiers were either unable or unwilling to sell at lower prices and this had increased rental demand, as had those finding it harder to obtain a mortgage or deferring buying a home in the belief prices would fall further.

In the past 12 months, the average house price in Belfast has risen by 18 per cent to £183,498 – the best performance for the city’s housing market since 2007. Some 54 per cent of all properties in the North sold during the first quarter of 2010 at or below £150,000.