The scrapping of academic selection added to the Bank of England's cut in interest rates to 5.5% could reignite the Northern Ireland property market in the New Year.

Now that the interest rate has been lowered lower borrowing costs would save between £15 and £20 a month on a £100,000 mortgage.

Top estate agents have said a "postcode lottery" is inevitable after the Education Minister's confirmation that the 11 plus will be replaced with a system allocating school places on a geographical, community or family basis.

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This means that children will attend their local post-primary school or one that a sibling already attends.

Michael Young, a partner and director at estate agency group Templeton Robinson said if kids are directed to their local school - irrespective of preference - it will lead to a hotting up in demand for property in areas close to the province's top schools.

"Education has always influenced where families want to live and as a consequence properties near our top schools have always been sought after," he said.

Mr Young said that for some parent's living within the catchment area of their school will become a priority

He said: "Stranmillis Primary School extended its boundary for a couple of weeks to Sharman Road and it had an instant impact on house prices in that area, which immediately rocketed."

Mr Young highlighted the strong property values near grammar schools such as Strathern College, Bloomfield Collegiate and Campbell College.

(GK/JM)