House prices are still falling in Northern Ireland according to the latest RICS (Royal Institution of Chartered Surveyors) and Ulster Bank Housing Market Survey. But the rate of price decline has eased, the survey suggests.

The net balance (-29%) of respondents to the survey reported that prices fell in the last three months (1% saying that prices were up, 69% saying they were unchanged, and 30% saying they were lower).

This was the least negative price balance reported since January 2011.

With regard to transactions, the net balance was +25 (17% saying the number of transactions reduced in the past three months, 42% saying that the number remained the same, and 42% saying that the number of transactions increased).

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The outlook however remains uncertain, according to respondents. The net balance for transaction expectations was -25 (33% of respondents expecting transaction volumes to be down in the next three months, 58% expecting them to remain the same, and 8% expecting them to rise).

In terms of the outlook for prices, the net balance was -15 (85% saying that they expect prices to remain unchanged in the next three months and 15% saying they expect prices to fall).

RICS Northern Ireland spokesman, Tom McClelland, said: "There is so much negative news around at present in relation to the difficulties in the Eurozone that it's unsurprising there is some uncertainty in relation to what might happen in the months ahead. However, there continues to be evidence that if priced correctly houses will sell, and the expectation is that this will continue to be the case."

Also commenting, Derek Wilson, Head of Lending Products at Ulster Bank, said: "The recent announcement of increased funding for Co-Ownership Housing will support activity in the first time buyer market, and Ulster Bank remains strongly committed to working in conjunction with the scheme. We are also seeing demand in other sectors of the market.

"Our focus is on continuing to make competitive deals available to support demand.

"We recently reduced rates and removed arrangement fees from our residential mortgage products for the remainder of this month."

(BMcC)