RICS Northern Ireland residential property spokesman Tom McClelland said: “Although there is probably some element of seasonality at play with regard to the July data, we have seen a clear trend of slowing house

price inflation over the past four months and this is almost certain to continue during the rest of the year.

“Whilst another interest rate rise could potentially lead to no house price growth for the foreseeable future, the huge number of first time buyers poised to capitalise on the fall-off in investor activity, combined with continuing strong local economic conditions, will guard against any significant house price decline,” he added.

Ulster Bank’s Head of Mortgages, Derek Wilson, commented: “Whilst conditions are still difficult for first time buyers, the fall-off in investor demand during recent months and the increase in supply to the market due to investors cashing in on the huge capital growth they’ve enjoyed in the past two years means that there is now greater choice for first time buyers and less competition for the purchase of properties in their sector of the market.

Therefore we anticipate a significant pick-up in first time buyer activity in the coming months, which should take up the slack resulting from declining investor demand.”

Mr McClelland added: “Although house price growth has moderated considerably in the four months to the end of July, housing affordability is still a major concern and RICS Northern Ireland looks forward to working with Executive Ministers and the relevant government departments and agencies on the issue in the coming months.”

Source: Lurgan Mail - August 2007