HOUSE prices in Northern Ireland have risen substantially in the last quarter of 1996, according to a report published yesterday. The survey by the University of Ulster shows that the biggest price rise was for terraced property which increased by an average of 23.54 per cent.

This means that Northern Ireland is no longer the lowest cost regional housing market within the United Kingdom. This rapid rate of increase means that the average cost of housing in Northern Ireland is either the same or higher than in regions in Britain.

According to the figures, semi detached houses are worth on average 13.35 per cent more while detached houses have risen in value by 12.34 per cent. Bungalows are worth up to 17.17 per cent more, while the weakest increase was in the apartment sector, now worth 8.03 per cent more than three months ago.

The average overall value of houses in the last quarter of 1996 rose to £55,224, compared with an overall 1995 average of £45,085. The author of the report, Prof Alastair Adair, highlighted the sustained growth in the private housing market since 1994.

Increased political uncertainty does not appear to have had any major short term impact on the wider housing market, according to the report, which is a regular quarterly survey sponsored by the Ulster Bank. However, the report cautions that a further erosion of the peace process could well affect confidence in the local market.

The average cost of housing in Belfast is now £56,073, while in north Down it is £58,391.