N Ireland tops house price chart

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Northern Ireland saw house prices rise faster than in any other part of the UK during 2006, a survey from Halifax Estate Agents suggests.

The top 10 towns recording the biggest price increases during the year were all in Northern Ireland.

Newry saw the strongest growth, with prices rising 54% on average in 2006.

Elsewhere, London and the south east of England saw strong price growth, buoyed by high City bonuses and a shortage of housing supply.

2006 is Northern Ireland's year, with all ten of the towns in the UK delivering the biggest price rises over the past year located there Colin Kemp, Halifax Estate Agents

Overall, UK house price growth exceeded all but a few analysts' forecasts.

The Nationwide and Halifax both predicted house price growth in the low single figures.

However, by December the annual rate of house price inflation was running at close to 10%, both the Nationwide and Halifax said.

Peace dividend

The rapid rise in house prices in Northern Ireland is, in part, a reflection of a strong employment market and high levels of immigration, Halifax said.

In addition, the peace dividend, coupled with historically low prices, has attracted homebuyers.

Colin Kemp, managing director, Halifax Estate Agents, said: "2006 is Northern Ireland's year, with all 10 of the towns in the UK delivering the biggest price rises over the past year located there."

Mr Kemp added that only one town in the UK - Lochgelly, in Fife - recorded average prices below £100,000.

In 2003, more than 100 towns had average prices in excess of £100,000.

North-south divide

TOP FIVE FASTEST RISING UK TOWNS Newry (Northern Ireland) 54% riseCraigavon (Northern Ireland) 51% riseDownpatrick (Northern Ireland) 48% riseNewtownards (Northern Ireland) 43% riseAntrim (Northern Ireland) 39% riseSource: Halifax Estate Agents

Despite some analysts' forecasts that the north-south property price divide would narrow in 2006, the south-east of England is still the most expensive place to live in the UK, the Halifax said.

Gerrards Cross was, for the second year in a row, the costliest place to buy a house.

On average it costs nearly £725,000 to buy a house in the Buckinghamshire town.

It was followed by the London boroughs of Kensington and Chelsea and Westminster, where the typical homebuyer paid £695,874 and £530,262 respectively.