Market showing signs of confidence

The firms behind Thaxton Village, on the outskirts of Lisburn, used the landmark development as an illustration of how particular developments don’t fit into media stereotypes of crashing prices and dormant sales.

Bucking general trends, Thaxton Village sold, on average 100 homes a year since its official launch in autumn 2007.

These sales figures are in stark contrast to what has been reported on many developments throughout Northern Ireland and will surprise many commentators relying upon simplistic headline figures.

Conor Mulligan, director of Lagan Homes, one of the four developers in the consortium behind Thaxton Village, said the sales figures are extremely encouraging.

“The remarkable thing about this development in particular is the fact that the prices have remained consistent for the majority of that period, with little or no change over the last two years,” he said. “With four developers on the site, we have kept each other on our toes and I believe we all reacted early to the changes that were unfolding in the market. That early intervention has paid dividends.”

Simon Brien, director from BTW Cairns, said although Northern Ireland was compact it could be misleading to regard the housing market as a single entity.

“We often hear that Northern Ireland is a small place, but it is not so small that there aren’t markets within markets,” said Mr Brien. “Of course, during the boom, many areas over-inflated, but if you track areas such as Lisburn you will see that the peaks and troughs were much less pronounced.

“From the end of 2002 to the start of 2007, prices in this area rose by up to 60 per cent less than other comparators. In this sense it behaved in a fashion closer to that of a real market.”

Meanwhile, Tom Harper, financial director of Hagan Homes Ltd, argued developers needed to re-adjust the balance of affordability and profitability.

“In the current lending climate it is clear affordability is the key to sales,” he said. “Despite the headlines, banks are providing mortgages to those who intend to be sensible and spend within their means.

“Our experience with Thaxton is that the vast majority of those who approach their banks have been able to access the finance.

“An early intervention in pricing has meant we were able to deliver both affordability and stability in these uncertain times.”