Newry in Northern Ireland recorded the biggest increase in house prices across the UK in 2006 with an average rise of 54%, according to the fourth Halifax Estate Agent (HEA) annual survey of UK towns. All of the 10 towns delivering the biggest price increases are in Northern Ireland, making 2006 'Northern Ireland's Year'.
2006 was the first time that Northern Irish towns have dominated the list of 20 towns delivering the biggest house price rises. 2005 was 'Scotland's Year' with nine of the 20 towns experiencing the biggest house price increases north of the border. 2004 was the 'Year of the West' with 13 of the 20 towns recording the biggest house price increases located in western Britain, particularly Wales. 2003 was the 'Year of the North' with towns in northern England dominating the list of top 20 performers.
The rapid rise in house prices in Northern Ireland over the past year partly reflects a strong employment market and high levels of immigration, which have boosted demand. There has also been high demand for properties from second homebuyers and buy-to-let investors in Ireland who have been attracted by the relatively low prices in Northern Ireland. Those towns with good links to the major centres have experienced particularly strong housing market conditions. Newry, for example, has good access to the capitals of both Ireland and Northern Ireland with train journeys of 40 minutes and 75 minutes to Belfast and Dublin respectively.
