This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/uk-northern-ireland-23687628
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| PwC: NI house prices may take decade to recover from crash | PwC: NI house prices may take decade to recover from crash |
| (about 2 hours later) | |
| It may take more than a decade for Northern Ireland houses prices to recover from the crash, the consultancy firm PwC has warned. | It may take more than a decade for Northern Ireland houses prices to recover from the crash, the consultancy firm PwC has warned. |
| Its Northern Ireland chief economist, Dr Esmond Birnie, said it could be 2025 before prices again reach 2007 levels. | Its Northern Ireland chief economist, Dr Esmond Birnie, said it could be 2025 before prices again reach 2007 levels. |
| His analysis comes as another house price survey has suggested the troubled NI housing market is stabilising. | His analysis comes as another house price survey has suggested the troubled NI housing market is stabilising. |
| The University of Ulster survey showed prices fell very slightly in the second quarter of 2013, compared to the first. | The University of Ulster survey showed prices fell very slightly in the second quarter of 2013, compared to the first. |
| The university's Quarterly House Price Index survey examined 1,409 housing transactions. | The university's Quarterly House Price Index survey examined 1,409 housing transactions. |
| Market momentum | Market momentum |
| It showed an average price of £130,864, compared to £131,128 in the previous quarter. | It showed an average price of £130,864, compared to £131,128 in the previous quarter. |
| Figures published on Tuesday by Office for National Statistics (ONS) suggested that prices fell by 0.4% in the year to June giving an average price of £130,000. | Figures published on Tuesday by Office for National Statistics (ONS) suggested that prices fell by 0.4% in the year to June giving an average price of £130,000. |
| Nearly three quarters of the University of Ulster sample sold at or below £150,000, while 41% of properties sold at or below £100,000. | Nearly three quarters of the University of Ulster sample sold at or below £150,000, while 41% of properties sold at or below £100,000. |
| The authors of the University of Ulster report said these lower price bands are important in providing potential first-time buyers with a range of affordable housing. | The authors of the University of Ulster report said these lower price bands are important in providing potential first-time buyers with a range of affordable housing. |
| They added: "The sustained improvement in the volume of transactions in the survey indicates momentum in the market. | They added: "The sustained improvement in the volume of transactions in the survey indicates momentum in the market. |
| "Although the overall average price is virtually unchanged over the quarter, the stabilisation of price levels has - according to estate agents - led to an increase in first-time buyer activity." | |
| Income squeeze | Income squeeze |
| Dr Birnie said that while some types of property in popular areas are demonstrating real recovery, prices have "some way to go before they are clearly on the turn". | Dr Birnie said that while some types of property in popular areas are demonstrating real recovery, prices have "some way to go before they are clearly on the turn". |
| He added that a squeeze on disposable incomes could continue to act as a brake on the market. | He added that a squeeze on disposable incomes could continue to act as a brake on the market. |
| He said it could be 2025 before prices again reach 2007 levels. | |
| "It will take that amount of time based on what is likely to happen at the UK-wide level, where various projections have been made for house prices," he said. | |
| "It's got to be remembered there was a tremendous decline of the order of 50% from the peak in the summer of 2007, so it's not surprising it will take a considerable length of time to get back to where they were at their peak." | |
| PwC's economists analysed over a decade of data from the ONS to discover that, since 2009, UK average, real hourly earnings have fallen by 8.5%, but in Northern Ireland, they have fallen by 9.75%. | PwC's economists analysed over a decade of data from the ONS to discover that, since 2009, UK average, real hourly earnings have fallen by 8.5%, but in Northern Ireland, they have fallen by 9.75%. |
| It means that, allowing for inflation, Northern Ireland average hourly earnings at the start of 2013 were only around two pence more than they were in 2003. | It means that, allowing for inflation, Northern Ireland average hourly earnings at the start of 2013 were only around two pence more than they were in 2003. |
| Economic growth | Economic growth |
| Looking at the wider economy, Dr Birnie said that Northern Ireland is demonstrating signs of recovery. | Looking at the wider economy, Dr Birnie said that Northern Ireland is demonstrating signs of recovery. |
| Manufacturing and construction are reporting increased demand and orders, exports are up and claimant count unemployment has fallen in recent weeks, while redundancies appear to be slowing. | Manufacturing and construction are reporting increased demand and orders, exports are up and claimant count unemployment has fallen in recent weeks, while redundancies appear to be slowing. |
| He forecasts economic growth of around 0.5% in 2013, possibly rising to 1.5% in 2014, assuming continued steady recovery in the UK and Republic of Ireland. | He forecasts economic growth of around 0.5% in 2013, possibly rising to 1.5% in 2014, assuming continued steady recovery in the UK and Republic of Ireland. |