Prices in August were up by 3 per cent compared to the same month in the previous year, but remain 43 per cent lower than their peak in 2007.

Northern Ireland’s average house price is lower than in any other nation or region, and well below the UK-wide average of £284,000 in August.

Across the UK, house prices have risen by 5.2 per cent over the year to August 2015.

The average house price in England is £298,000, followed by £198,000 in Scotland and £174,000 in Wales.

Estate agent Simon Brien told the Belfast Telegraph that there was “strong demand at all price levels” for houses in Northern Ireland.

Mr Brien added: “New developments are beginning to come through strongly, and we are now again seeing people ready to buy properties ‘off-plan’. Things are returning to normal after the boom and bust of the last decade.

“Demand has been stronger in the east of Northern Ireland, with hotspots in east Belfast, south Belfast and north Down.”