Northern Ireland house prices at strongest level for almost 6 years

The price balance of the latest RICS and Ulster Bank Housing Market Survey for Northern Ireland was at its highest in almost six years in June.

It is only the second time since July 2007 that the price balance - which gives an indication of whether average house prices are rising or falling – has been in positive territory.

A net balance of 21% of respondents said that prices were up in the three months to the end of June (28% saying that prices were up in the period, 65% saying that they remained the same and 7% saying they were down).

The only other positive reading since July 2007 was in March 2013, when the price balance was 9.

Surveyors were also upbeat about transactions and transaction expectations in the June survey. A net balance of 44% said that transactions rose in the April, May, June period (56% said that they were up, 33% said that they remained the same, and 11% said they were down).

With regard to the outlook for prices, 89% of respondents said that they would remain the same in the three months ahead (July, August, September), with 11% saying they would be up - giving a net balance of 11.

The net balance for transactions expectations was 67. (67% said that they would be up in the three months ahead and 33% said they would remain the same).

Tom McClelland, RICS Northern Ireland housing spokesman, said : "We expect the summer months to provide an improvement, but, more significantly, what we are seeing is an overall trend of stabilisation in the market, which we expect to continue over the year as a whole. There will be bumps along the way, but we still expect 2013 to see an overall trend of easing price falls and increasing activity. The stabilisation in prices is encouraging greater activity, albeit we are still some way off what would be considered healthy transaction volumes."

Derek Wilson, Head of Lending Products at Ulster Bank, said: "There are a number of positive indicators in the market. Ulster Bank remains strongly committed to providing mortgage lending in all sectors of the market . We have provided more than £1.5billion of mortgage lending in the Northern Ireland market since the property price peak and continue to introduce initiatives that support demand and increase choice for borrowers."