The university’s latest quarterly house price index, produced in partnership with the Northern Ireland Housing Executive and Progressive Building Society, found that the average house price was £163,621 at the end of March.

The housing market has continued to experience a steady rate of price growth despite a slight decrease in sales volume.

Professor Stanley McGreal said: “The latest survey of the housing market in Northern Ireland indicates a steady rate of price increase of 4 per cent annually and 3.1 per cent over the last quarter.

“These rates of growth, above the general level of inflation, can provide confidence to both home owners and potential purchasers regarding the value of their investments while still maintaining affordability in the local housing market.”

Michael Boyd, deputy chief executive and finance director at Progressive Building Society, added: “The consumer squeeze that had been building throughout 2017 has eased, with inflation falling against the backdrop of rising wages, which has boosted spending power for local households.”