Overall, UK house prices reached a record high in February of this year, increasing by £12,000 compared to last year. The bad news for first time buyers in Britain is that on average, they will pay 7% more for their first property now than they did this time last year, therefore any delay in getting onto the property ladder could see this figure increase as prices are expected to rise further.
In Northern Ireland, average prices are some 44% lower than their market peak 10 years ago, but the good news for those thinking of selling is that the upward trend is continuing. The average NI house price is £125,480 according to the last House Price Index. This represents a 5.7% increase on last year and remains only 0.1% behind the UK average. A 7.3% increase in prices was also experienced in 2015.
The Strabane and Derry city areas have experienced the fastest rises in residential property prices, equating to an 11% increase in the last year, taking the average house price to £108, 464. Figures also show that the Lisburn and Castlereagh council area is much more expensive with average house prices at £149,600.
A report released in January by the Royal Institution of Chartered Surveyors (RICS) predicted a 3% rise in house prices in the UK in 2017, with similar figures predicted for Northern Ireland. Estate agents are being challenged at the moment by concerns over the supply of new houses which was at a standstill in the last quarter of 2016. As supply is failing to meet demand, house prices are edging upwards.
How Do House Prices in Newry compare?
According to online residential property website, Zoopla, the current average property value in Newry & Mourne in April 2017 is £147,125. This is a 0.16% increase over the last quarter on figures recorded in January 2017. Cost differences based on the type of property can be noted, for example, the average selling price for terraced properties is £110,576 compared to £149,174 for semi-detached houses.
According to Zoopla estimates, property prices in Newry & Mourne have increased by 1.27% in the past year. Like Lisburn and Castlereagh, the Newry and Mourne area is also a highly desirable location to live in.
So what does this mean for local buyers and sellers?
1. If you are thinking of buying your first home don’t delay, as each year the average house price trends have been rising. If prices continue to rise at the same rate as last year, this may mean you will have to increase your budget, or compromise on the property you choose in order to stay within your budget.
- If you are thinking of selling your home you should bear in mind that the economy is somewhat uncertain at the moment due to Brexit. It is unknown how house prices will react albeit at a time of a shortage in supply of new houses.
Luke Curran & Co. First Time Buyers Guide
At Luke Curran & Co, we realise that the property market can be somewhat confusing and daunting, particularly to first time buyers, therefore we’ve compiled a free First Time Buyers Guide which will explain the process step by step, detailing your responsibilities and those of your estate agent, solicitor and any other parties involved in the transaction.
Our team are experienced in conveyancing and all legal procedures associated with the purchase and sale of residential property. We have your best interests at heart and therefore offer a No Sale, No Fee solution. If the deal fails to complete due to no fault of your own, you will only be asked to pay for any outlay we have incurred on your behalf.
Find out more about our residential property services or get in touch for confidential advice on your options.
