House prices in Northern Ireland outperformed any other region in the UK and look set to continue rising in 2007, a report has stated.

Halifax, Britain's largest mortgage provider, found that Newry in Co Down posted a 54 per cent price jump in the last 12 months. This is the biggest anywhere in Britain or Northern Ireland.

Overall, the average price of a home in the North has now reached £162,821 (€242,828), more than 23 per cent higher than last year.

Detached homes typically are worth £238,103, semi-detached cost £148,109, with terraced properties averaging £127,847 and apartments costing £146,097. According to Halifax the jump in house prices in Northern Ireland over the past year partly reflects a strong employment market and high levels of immigration, which have boosted demand.

But the bank also cites high demand for properties from second homebuyers and buy-to-let investors in the Republic who have been attracted by the relatively low prices.

Lisburn, Co Antrim, is now the most expensive region in Northern Ireland in which to buy a home, with average costs nudging £195,000.

The north coast and Coleraine in Co Derry is around £10,000 cheaper, with parts of mid and south Down marginally less expensive in third place.

East Antrim comes in final place with average property costs at just £128,000.

Major towns across the North, including Craigavon, Downpatrick, Belfast and Armagh, all illustrated the continuing property boom.

The Halifax added that 2006 was the first time that Northern towns have dominated the list of 20 towns delivering the biggest house price rises.

Even towns well down the list of top performers posted significant house price increases.

Ballymena, Co Antrim, saw its average prices rise by one-third despite some image difficulties linked to sectarian tensions in the town. Forecasts by the major lenders point to the trend continuing but with single figure rises anticipated.

Halifax and Nationwide, the UK's largest building society, both anticipate rises throughout 2007 and even into 2008.

This view is endorsed by the Council of Mortgage lenders and the Royal Institute of Chartered Surveyors.

Cross-Border communications will be significantly improved when the main motorway link between Belfast and Dublin is completed, thus shortening the drive time.

This is expected to drive prices in the Newry area and north towards Lisburn and Belfast yet higher.