Although a third of local estate agents are reporting falling house values, Northern Ireland's house prices are said to be becoming more stable.

This glimmer of hope in a previously 'free-fall' market comes from the latest survey prepared by the Royal Institution of Chartered Surveyors.

It shows a marked improvement on earlier in the year and even though 32% of estate agents said prices were falling, around 8% reported a rise.


Sixty percent of those who responded to the Ulster Bank sponsored survey said prices remained static.

RICS Northern Ireland Housing Spokesman, Tom McClelland, said: "The RICS Housing Market Survey has shown a general trend of stabilising prices over the past six months or so.

"However, with some surveyors now reporting price rises and others still reporting falls, it is clear that there are still variations in the market".

Overall, Mr McClelland said the outlook on house prices was positive in the near term, but cautioned: "There will be significant challenges for the economy and the housing market - not least the prospect of very large cuts in public spending.

"We also wait to see the extent to which NAMA impacts on the local market," he said.

(BMcC/KMcA)