THE decline in house prices has continued, according to the latest market report. The survey, from the Royal Institution of Chartered Surveyors (RICS), shows that values dropped down more than five per cent in some areas in the past month alone. The continual slashing of prices has, however, failed the ease the decline in Northern Ireland's housing market, according to estate agents. The survey findings stand in sharp contrast to 18 months ago, which reported 'frenzied activity' by investors. While acknowledging that the mainstream lending market is "under strain", local mortgage broker, Damien McMenamin of Best Choice Mortgages, has yet to see a decline in interest in the market from first-time buyers in the Strabane area.

"We have had a lot of recent inquiries from people looking to buy their first homes," he said. "Recent activity and interest is buoyant as far as Best Choice is concerned. However, finding a lender to provide a mortgage is proving more difficult in the current market.

"The number one factor hindering first time buyers has been the removal of the co ownership scheme," he continued. "Northern Ireland is currently the only area where there is no government assistance in helping first time buyers get on the property ladder. That in itself is an embarrassment to the current devolved government here."

The distancing from the 'frenzied activity' of investors 18 months ago has been reinforced by tightening in lending criteria, according to Mr McMenamin. "First time buyers will find that it takes much longer to get a firm approval from a lender than what it would have taken last year," he said.

"However, mortgage brokers have more flexibility and have access to the whole mortgage market and are proving to be more successful in finding first time buyers the right lender willing to lend."

RICS Northern Ireland housing spokesman, Tom McClelland believes recent media coverage has influenced a cautiousness in potential house buyers. "Negative news flow is discouraging interest in the market," he stressed, "which is forcing sellers to cut asking prices further and some economists are suggesting that prices could therefore overshoot on the way down, having overshot on the way up in recent years."

Mr McMenamin agrees that media speculation has created a "fear factor" for many, but he also believes that for the first time in four years people are able to find great offers in the Strabane area.

"The average property price in Strabane has risen from £62,938 in 2002 to £204,563 in 2007 which was an increase of 225 per-cent. What we have witnessed in recent times is a house price correction," he said.

"The privately rented sector had 810 dwellings in 2001 compared to over 1060 by 2006 - an increase of 31 percent. Home prices in the area must be directly related to what people earn here. There is no point in having high prices if no-one can afford to buy."

First Time Buyers with some source of deposit should be presently optimistic about securing a mortgage, according to Mr McMenamin. "In my opinion, first time buyers should seek advice from mortgage brokers as to what options are available to them in finding the right deposit," he urged.