There has been a slight increase in housing transactions in NI but prices have continued to fall, according to a survey by the Royal Institution of Chartered Surveyors (RCIS).

Greater Belfast fared best and there were signs of more sales activity at the lower end of the market.

Spring and early summer are traditionally the optimum times for buying and selling and this has contributed to the upsurge. However, it is predicted that prices will fall in the months ahead.

RICS housing spokesman Tom McClelland said it was a mixed picture.

"At the lower end of the market at least, there are increasing signs that asking prices and buyers' ability to borrow are more closely aligned," he said.

Derek Wilson, the head of lending products at Ulster Bank which co-authored the report, said: "We have been encouraged by the level of interest and activity that we have experienced in recent months."

Northern Ireland has suffered one of the most severe house price crashes on record. Prices have declined by more than 40% since 2007, and when the drop is adjusted for inflation, the decline is more than 50%. Levels of transactions remain far below the peak and the number of new homes being built are also at record lows. The subdued state of the market reflects the overall weakness of the Northern Ireland economy and much stricter lending criteria being imposed by the banks.