North house prices growing at 13% - survey

House prices in Northern Ireland are now growing by an annual rate of 13 per cent, a study revealed today.

House prices in Northern Ireland are now growing by an annual rate of 13 per cent, a study revealed today.

With no sign of the market facing any slowdown, the average cost for a property has reached £118,313 sterling.

But economists predicted any future surges in the University of Ulster's house price index could be less dramatic.

Mr Alan Bridle, the Bank of Ireland's head of research in Northern Ireland, said: "The findings of the latest survey portray a market which, in general, is still bubbling along with the highest rate of annual increase since the third quarter of 2002.

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"It may be, however, that the latest annual reading is something of a 'high water mark', and we anticipate a return to high single-digit price growth in 2005, perhaps 7 per cent.

"The fortunes of the market remain inextricably linked to the general health of the economy, the cost of borrowing and the affordability constraints on first-time buyers."

The latest quarterly analysis from October to December 2004 reinforced a decade-long price rally.

Based on a sample of 2028 open market transactions across the whole range of property types, it was produced in partnership with the Bank of Ireland and supported by the Northern Ireland Housing Executive.

PA