East Belfast Sectoral Study - Northern Ireland Housing Executive

Average
Price 2003
Quarter 4
Average
Price 2004
Quarter 4
Average
Price 2005
Quarter 4
Average
Price 2006
Quarter 4
Change
Northern
Ireland £105,863 £118,313 £145,987 £195,751 85%
Belfast All
£105,242 £112,849 £135,781 £191,819 82%
North
Belfast £83,825 £89,320 £103,384 £152,145 82%
South
Belfast £136,738 £141,615 £171,904 £241,390 77%
West
Belfast £89,367 £81,990 £107,165 £143,384 60%
East
Belfast £117,570 £132,951 £151,432 £211,925 80%
Table 8 Average House Prices (University of Ulster)
• Political stability and economic growth have combined to change the character
of the East Belfast market. New buyers have been attracted to locations such as
Cregagh, Bloomfield and Sydenham where price rises, particularly in terrace
property have doubled in the past 3 years. Ex- NIHE property is also
experiencing significant rises in price. Terrace property in Ballybeen and
Tullycarnet now sell in excess of £120k.
• The two main drivers of the market are the role of investors and relatively strong
first time buyer activity, particularly in property in the £150k-£170k range. Most
first time buyers are “Stretching to their financial limit” in order to gain a
foothold onto the market. Lenders have tailored policies to address affordability
issues. These include 35 year mortgage terms, joint purchasing buying and
renting rooms to friends (the Stranmillis purchase) and 100% loans. In
December 2006 almost 60% of first time buyers bought property in excess of the
£125k threshold for Stamp Duty. It is widely recognised that interest rate rises
will mitigate against first time buyers, although recent rises have not had a “
cooling effect “ on the market.
• Investors have been traditionally been most active in South Belfast where a
growing population and shortage of accommodation has ensured premium rental
income in addition to significant capital gain. However as that market has
become more saturated, investors have been looking elsewhere, as have
prospective private tenants. In East Belfast competition between investors and
first time buyers has been most acute in the terrace house market. This has led to
first time buyers either “overstretching “or being outbid. The Co ownership
threshold of £150k has largely been eroded in the study area. Investors have
also been active in the new build sector as subsequent releases of schemes tend
to command higher prices.
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