House Prices in Northern Ireland Continue to Fall

Figures released this week show that the average house price in Northern Ireland fell by 7.7% last year.  The University of Ulster House Price Index shows that Northern Ireland has yet to show any sign of recovery in the housing market with 92% of properties selling at or below £150,000.

These figures combined with increasing levels of unemployment in Northern Ireland and public sector cuts continue to give real cause for concern.  Citizens Advice continues to see many clients who are affected by the recession and who come to local bureaux for help in relation to their benefits, debts or employment issues.

For many of our clients, particularly those in debt, the fact that there has been no sign of recovery in the housing market makes their situation even more difficult.  Due to the fall in house prices people no longer have an asset that they can realise to pay their debts and those in negative equity will remain trapped in their debt situation. 

Those people who took out large mortgages on properties which have dropped significantly in value are finding it both financially and psychologically very difficult.  They are struggling to meet their large mortgage payments while watching the value of their home dropping in price and knowing that they will be unable to move.  Some people with large mortgage shortfall debts are consequently forced into a bankruptcy situation as they are unable to sell their homes.