House prices in the North rising

Latest data has pointed to continued good news for the housing market in the North, with prices and transaction volumes rising over the summer months.

The Royal Institution of Chartered Surveyors/Ulster Bank Housing Market Survey showed its highest price balance in over six years, last month, with August also representing the first time the index has managed to report three consecutive months of positive price balance — a firm indication that house prices are rising.

“Whether this sunny disposition can be sustained into the autumnal months remains to be seen,” said Tom McClelland, RICS Northern Ireland housing spokesperson. “But, we remain of the view that although there will inevitably be seasonal variations and bumps along the way, the market remains on course for a general improvement over the year as a whole.”

A net balance of 57% of surveyors said that house transactions rose during the past three months, the highest level in the North for four years. Additionally, a net balance of 43% expect transactions to continue rising in the next three months.

Overall, for the UK, the August RICS index increased to 40 points from a revised 37 in July, the highest since Nov 2006.

Recent reports suggested the UK property market is gaining strength as credit-easing initiatives from the government and the Bank of England boost mortgage availability.

Chancellor of the exchequer, George Osborne, defended his housing policy, this week, amid criticism he may be fuelling a new bubble.