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Ulster's House Prices Boom...

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Ulster's house prices boom - but there could be bust ahead

By Helen Carson

(Taken from: Belfast Telegraph - 29 May 2006)

Northern Ireland's property price boom could be followed by bust, resulting in negative equity for many householders, it was claimed today.

Ulster home-owners have seen the value of their properties soar in recent years with record-breaking growth for all properties provincewide.

The most recent figures put the average house price here at over £140,000.

But an industry expert has claimed the bubble could be about to burst.

Alan Crowe, chief executive of Northern Ireland Co-Ownership Association, claimed rising house prices could be getting out of control. "The current market does worry me and there is the potential for negative equity."

Mr Crowe claimed the growing number of buyers investing in property has created an imbalance in the market, pushing prices up: "It can't be boom, boom, boom. It is like Wall Street before the crash... it's not whether you own a property, it's how many."

The housing chief said escalating prices cannot continue, warning an interest rate rise could cause chaos for home-owners.

"The average salary here is £22,000 and the average house price is £140,000 - that's six times more," he pointed out.

And Mr Crowe's fears about an interest rate rise is borne out by the Council of Mortgage Lenders, which reported record mortgage spending in April.

"The interest rate picture has changed and financial markets are expecting the Bank of England to raise rates this summer. If it happens, housing and mortgage market activity is likely to slow down from the recent high levelsl as the year progresses," said Michael Coogan, CML director general.

And this could spell disaster for home-owners who have over-stretched themselves financially. A recent Belfast Telegraph investigation revealed some first-time buyers are borrowing up to four-and-a-half times their salary to get on the property ladder.

Mr Crowe added: "Northern Ireland does not have the population with the income to keep buying at these prices."

And he has called for a multi-agency approach, involving estate agents and financial institutions, in a bid to tackle the issue of affordable housing.

He said household budgets will be even more stretched with rates reforms and water charges looming.

"Home ownership should be available to everyone," he said.

But Templeton Robinson estate agent, Patrick Palmer, claimed there will not be a boom and bust here. "There is no danger of negative equity as our prices are still very much value for money, especially compared to somewhere like Dublin, where prices are so high."

The great Irish bubble goes pop? :blink:

But Templeton Robinson estate agent, Patrick Palmer, claimed there will not be a boom and bust here. "There is no danger of negative equity as our prices are still very much value for money, especially compared to somewhere like Dublin, where prices are so high."

...loved this bit! It couldn't happen here! "Nothing to see here, move along please." :lol:

Edited by TwentyOneEleven

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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