It's out with the old and in with the new in north Belfast as nearly 300 homes are to be demolished for redevelopment.

The good news for the building trade comes at an opportune moment, as there's other views being expressed this week that the workload of construction firms in Northern Ireland is actually "still falling".

NI Social Development Minister Margaret Ritchie is to spend £38m on new homes in the Upper Long Street, Parkside and Queen Victoria Gardens areas - with a total of 276 old terraced homes knocked down to make way for almost 150 new homes to be constructed.

But - according to the Royal Institution of Chartered Surveyors (RICS) - NI has the most chartered surveyors experiencing declining workloads across the UK.

RICS said, no sector recorded growth, and that public and private housing work is "particularly struggling".

Factors cited by those responding to the survey included public sector indecision ahead of expected budget reductions; project delays because of contractor insolvencies; difficulties with the planning process; and funding problems.

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Even looking ahead 12 months, two-thirds of Northern Ireland respondents expected both workloads and employment levels to be further reduced by then.

RICS Northern Ireland spokesman Jim Sammon said: "The fear of large public spending cuts is a major factor depressing the local construction market, which is very public sector-driven."

In counterpoint, the housing fillip is adding a much-needed boost, described as resulting in "modern, up-to-date housing" to replace two-up, two-down homes.

"We will be replacing them with the best quality housing," Ms Ritchie said.

"To complement that I have already announced provision for the Girdwood barracks site, which is some two miles - maybe not even two miles - from that, and that's 200 houses over the next two years."

Ms Ritchie said she had previously visited the areas set for redevelopment and saw the poor housing people were living in.

"I made it clear when I launched the New Housing Agenda that I wanted to increase both the quantity and quality of our housing," she said.

Oldpark Councillor Nichola Mallon has moved quickly to welcome the announcement: "Residents in these communities have had their hopes raised for new, high quality, modern homes in north Belfast."

The SDLP's Cllr Mallon said: "Residents in these communities have had their hopes raised and dashed before.

"I therefore particularly welcome the fact that the Minister has provided the necessary funding so work on the new homes can start immediately.

"This investment will make a significant difference to the lives of so many people living in these communities," she said.

(BMcC/GK)