PROPERTY: House prices rose at a slower rate in Northern Ireland last year than in any other region of the United Kingdom, according to one of Britain's largest building societies.
Nationwide's house price review of 2001 shows the average price of a house in the North rose by just 3.5 per cent, compared to a UK average of 13.8 per cent.
Although interest rates fell to a 40-year low during the last 12 months, Nationwide's latest survey reflects a dramatic slowdown in house price growth in the region. Northern Ireland is currently languishing at the bottom of Nationwide's growth league behind Scotland, where house prices rose by 4.7 per cent last year. The fastest growing region in the UK during 2001 was East Anglia, where the average house price rose by 18.1 per cent.
The latest Nationwide survey shows that, despite the negative impact of the foot-and-mouth outbreak and the terrorist attacks of September 11th, all regions in the UK, except Scotland and Northern Ireland, recorded double-digit growth last year. Northern Ireland's downbeat performance is at odds with its 2000 placing, when it was top of the polls as the fastest growing region of the UK - with house price growth at 15 per cent.
According to Mr Dan Corr, Northern Ireland manager for Nationwide, the slowdown in house price growth last year reflected the end of a particularly buoyant period for buyers and sellers.
"We have had five years of significant house price increases, mainly due to the peace dividend and the spillover from the Celtic Tiger but, in reality, these price increases were not sustainable.
"Northern Ireland had leapfrogged over many other regions in the UK in terms of house price growth, and that rapid growth has simply tailed off," Mr Corr said.
He said the fact remained that house prices were continuing to rise in the North - but just not at the same rate as before.
According to Nationwide, the average house price in Northern Ireland now stands at £75,000 sterling (€120,000).
Its survey shows that the average price of a new detached house is in the region of £109,320, while an apartment is likely to cost around £82,000. Mr Corr said he expected house prices to continue to rise by 3.5 per cent in Northern Ireland during 2002, compared to a UK average of 6 per cent.
