Belfast prices peak as buy-to-let moves on

Property price rises in Northern Ireland have increased sharply in the past year, as progress in the peace process and political stability restored confidence in the market.

In earlier times the cost of a home in the Province was well below the UK average because the Troubles hindered investment and prosperity.

In October, Nationwide published figures showing an annual rate of increase of 50% for Belfast, making it the fastest rising property market in the UK, outside London.

In the past two years, the market has been fuelled by buy-to-let investors and prices quickly caught up with the rest of the country.

However, they then continued to accelerate, despite average earnings being considerably below the UK average.

There are now signs that the market has peaked as buy-to-let investors are moving on to new markets.

The average house price in Belfast is now £313,000; two-bedroom flats in the city cost between £150,000 and £200,000; terraced houses £180,000 to £300,000, and semi-detached homes in the region of £250,000 to £350,000.

According to one local estate agent, prices are beginning to fall back by around 10% to15%, when compared to the summer.

Some are expecting a 20% mark down in prices this autumn but bearing in mind the recent rate of increase, this could be seen as a sign of stability returning to the market, rather than a crash.

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