House prices in Northern Ireland increased by seven per cent over the past year, according to new figures published by the Department of Finance.

Finance Minister Mervyn Storey said he believed there is “continued confidence in our housing market, which is encouraging for the Northern Ireland economy as a whole”.

The Northern Ireland Residential Property Price Index (NI RPPI), published on a quarterly basis, is produced by the Department’s Land & Property Services (LPS) in conjunction with the Northern Ireland Statistics & Research Agency (NISRA).

It examines every sale in Northern Ireland using data from HM Revenue & Customs and from LPS.

Mr Storey explained: “The figures in the report for the fourth quarter of 2015 show a 1 per cent quarterly increase in the Index – with small variations between property types.

“The analysis demonstrates that, viewed over the 12 month period, residential property prices have again shown steady progress, with an annual increase of 7 per cent .

“The analysis at council level shows annual increases of between 3 per cent and 13 per cent across all district council areas.”

He added: “Importantly, in tandem with price increases, the market exhibits a healthy balance with annual earnings.

“Looking back on the figures for 2015, it is encouraging to see evidence that we have an affordable housing market in Northern Ireland with an improved relationship where prices are 4.3 times earnings in 2015, compared to 4.5 in 2014, and especially compared to the figure of 9.1 in 2007.”