Some Northern Ireland homeowners have been forced to slash the price of their properties by up to 30%, it has been revealed.

The Royal Institution of Chartered Surveyors has described the situation as a 'new reality' for the Ulster property market.

Northern Ireland spokesman for the society, Tom McClelland, said some homeowners were prepared to "bite the bullet" and "face up to reality".

However, he has suggested, "there is quite a bit of pent up demand out there".

Mr McClelland said: "Where builders and ordinary sellers have cut prices by between 25% and 30% they have been getting sales."

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With property investors now leaving the market, the average house prices is now more'‘in kilter' with the average income of the first time buyer, according to Mr McClelland.

Despite 91% of RICS members reporting 14 months of consecutive house price drops - the local market still appears to remain stagnant.

Mr McClelland said: "The global financial market turmoil and the deteriorating economic picture have clearly dented consumer confidence which has inevitably fed through into the local housing market."

Ulster Bank's head of mortgages, Derek Wilson, said support is being offered to first time buyers, to help them get on the property ladder - a step that is important for the whole market.

Mr Wilson suggested homeowners would benefit from last week's interest rate cut, which was designed to promote purchasing activity in the property market.

(PR/JM)