The pace of Northern Ireland's declining house prices is easing off, according to new figures from the Royal Institution of Chartered Surveyors (RICS) and Ulster Bank.

The RICS housing survey, which is sponsored by Ulster Bank, reports that although Northern Ireland house prices continued to fall during March, the pace of decline eased back from February.

Seventy-one per cent of respondents to the survey reported house price falls in the March survey, compared to 95% in the February survey.

RICS Northern Ireland Housing Spokesman, Tom McClelland, said: "Whilst the balance of chartered surveyors reporting price deflation in the rest of the UK has taken a turn for the worse, the survey reports that price falls in Northern Ireland, although still significant, have been easing back.

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"Contributors to the survey in Northern Ireland are reporting a continuing rise in viewing numbers as well as signs of improving demand. The increase in demand is probably seasonally driven and may therefore continue into the coming months, depending on the Bank of England's willingness to reduce interest rates further and mortgage lenders' willingness to pass on any reductions."

Derek Wilson, Ulster Bank Head of Mortgages added: "Indications of an easing back in local house price falls is encouraging and will help create confidence. The next few months will be very important as many potential buyers will be considering at what point it is best to enter the market."

In the RICS housing survey for March nearly one third of Northern Ireland respondents said that house prices stayed the same. Nearly one third said that prices fell by up to 2%. Twelve per cent of respondents said that prices had been falling by between two and 5%. Meanwhile, 27% said that prices had been falling by more than 5%.

In the UK as a whole, the balance of chartered surveyors reported price falls was 78.5% in March compared to 65.7% in February.

(VB/JM)