Housing Market In The North "Holding Its Own"

The North's housing market is now faring marginally better in terms of price falls than most other regions in the UK.

However a report by the Royal Institution of Chartered Surveyors (RICS) said the volume of sales remained low in July and was at a virtual standstill in many areas - exacerbated by the difficulties first-time buyers were having in getting a mortgage.

The RICS said there was continuing uncertainty among buyers and took a swipe at government saying confusion over the Treasury position on stamp duty was making matters worse.

Amid the continuing housing gloom asking prices have been cut "aggressively" in some areas.

Across Northern Ireland 88% of surveyors last month reported falling rather than rising prices - 4% more than in June.

However, seven of the 12 UK regions fared worse.

RICS Northern Ireland housing spokesman Tom McClelland said: "Low sales levels are not unexpected during July; however, continued uncertainly amongst potential buyers and difficulties that first-time buyers are experiencing obtaining mortgage finance have resulted in the housing market being at a virtual standstill in many areas."

He added: "Confusion over the Treasury position on stamp duty will not help sales levels in the near-term, however, asking prices have already been cut aggressively in some sectors of the market and in many parts of Northern Ireland."

The expectation was that the price cuts would eventually tempt buyers back - particularly if new initiatives from government and lenders to support first-time buyers were forthcoming.

Mr McClelland said: "Some agents are already reporting an increase in inquiry levels in some areas as many seek bargains."