House Prices in Northern Ireland have fallen for the first time in more than three years, according to the latest survey by the Ulster Bank. The survey says that the decline in the final quarter of 1997 means that the recent period of "rampant" price rises has come to an end.

The fall of 2.5 per cent in average house prices shown by the Ulster Bank-sponsored quarterly index in the final quarter of last year follows successive years in which property values have risen by well over 10 per cent. But in spite of the decline, values over the full year were still 8 per cent ahead of 1996. The authors of the report say that some sectors, including terraced properties, continue to show strong growth, and that, while interest rate increases have had an impact, prices are expected to continue to rise faster than inflation. Home ownership, they say, continues to be a good long-term investment.