Northern Ireland surveyors are split between those who say house prices are falling and those who say they are stable.

But according to a housing survey by the Royal Institute of Chartered Surveyors (RICS) and Ulster Bank house prices in Northern Ireland are at 2010 lows whilst transaction volumes are rising at a steady pace.

The survey revealed that house prices fell last month to their lowest level since November 2010.

Meanwhile the report, on the surface, gives better news with regard to transaction volumes, with almost 90% of respondents saying that the number of house sales in the past three months was either up or remained the same. Surveyors expect this trend to continue.

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RICS Northern Ireland Spokesperson, Tom McClelland said: "The rise in transaction volumes in this context has not been surprising, particularly as sales levels have been coming from very low levels."

High unemployment and budget cuts are to blame for falling house prices according to the report by RICS and Ulster Bank.

Mr McClelland said:"Economic uncertainty and rising living costs still dominate the media and are clearly having their bearing on the local housing market. With economic news the world over dramatically bad in August, there is little surprise that activity and sentiment in the housing market have been impacted."

However Derek Wilson, head of lending products at Ulster Bank said: "It is encouraging to see the modest increases in transaction levels being reported which suggests increasing confidence on the part of prospective purchasers.

"While first time buyers continue to benefit from improved affordability it is likely to take some time for this to filter through to the wider property market."

(LB)