NI house prices 'still falling'

House prices in Northern Ireland are still falling, according to the Royal Institution of Chartered Surveyors.

Its latest survey which is paid for by the Ulster Bank - showed house sales are increasing but remain a long way from "normal levels".

Since the peak of the property boom in the summer of 2007, its estimated that house prices in Northern Ireland have fallen by around 40%.

A spokesman said the local economy was facing a slow, uneven recovery.

There is no hope for a 'fast fix' in the housing market.

RICS Northern Ireland housing spokesman Tom McClelland said the number of houses being bought and sold was up - but marginally - and levels were far from normal.

"The housing market, like the economy, is in recovery mode. However, like the economy, recovery in the housing market is going to be slow," Mr McClelland said.

"Housing transaction levels, which are the most important factor in the housing market recovery, are rising, but at a marginal rate, and are still a long way off what you could call normal levels.

'Sluggish'

"In terms of prices, there continues to be some movement, but we anticipate that average house prices will be broadly flat over the course of the next couple of years. However, there will be variations and there are risks."

Mr McClelland said the slow rate of change would probably continue, given that economic growth was sluggish and significant challenges such as public sector spending cuts lie on the horizon.

Derek Wilson, head of lending products at Ulster Bank which sponsors the survey, said anyone hoping for strong price growth in the near future would probably be disappointed.

"It will be encouraging for those seeking to purchase a home that the market is moving increasingly away from what were abnormal market conditions and into a period of greater stability," he said.

A net balance of 30% of Northern Ireland chartered surveyors reported rising transaction levels in the February survey.

A net balance of 70% said they expected transaction levels to rise further over the next three months.

In terms of prices, 60% reported that they have remained the same over the past three months, with 5% saying they had risen and 36% reporting a downturn.