As of the third quarter of 2023, the average house price in Northern Ireland has risen to £179,530, marking a 3.1% increase from the second quarter. This uptick is particularly noteworthy considering the broader context: a significant reduction in the number of new homes being built, according to data from the Northern Ireland Statistics and Research Agency.
A Closer Look at the Numbers
- Yearly Comparison: Compared to the same quarter last year, prices are up by 2.1%.
- COVID-19 Impact: Since the onset of the pandemic, the average home price has surged by about £40,000.
- Recent Trends: Prices had dipped at the end of 2022 and early 2023 but have been on an upward trajectory since.
Factors Behind the Price Increase
Several factors are influencing this rise in prices:
- Reduced Housing Stock: There’s a shortage of available homes, leading to more competition among buyers.
- Slowdown in Construction: The number of new homes being built is declining, with the lowest number of new starts in a third quarter since 2013.
- Inflation in Construction: The building sector is grappling with high inflation, which is driving up costs.
Specific Data on New Builds
- Comparative Decrease: New house starts in the first nine months of 2023 are down 21.7% from last year and 25.5% from 2019.
- Completion Rates: Only 3,889 dwellings were completed in the past three quarters, a significant decrease from previous years.
Regional Variations in Prices
Not all areas are experiencing these changes equally:
- Terrace Housing: These saw the largest quarterly increase, with prices rising 4.5% to £124,875.
- Detached Houses: Prices went up by 1.6% over the quarter to £275,312.
- Apartments: Average prices rose by 3% over the quarter to £135,147.
The Most and Least Expensive Areas
- Most Expensive: Lisburn and Castlereagh, with average prices reaching £207,824.
- Least Expensive: Fermanagh and Omagh, with an average of £160,396.
Comparing to the Wider UK Market
Interestingly, Northern Ireland’s market is outperforming the broader UK trend, where the average property price fell slightly.