House price growth in Armagh, northern Ireland, has outpaced that seen in any other city in the UK in recent years, new figures have revealed.

According to Halifax Estate Agents, prices in the area have risen by 188 per cent since 2002, with prices in the northern Irish cities of Newry, Lisburn and Londonderry also rising sharply.

Martin Ellis, chief economist at Halifax Estate Agents, said: "All four cities with the highest house price growth in the last five years are in Northern Ireland, reflecting the phenomenal rise in prices across Northern Ireland in the past few years."

"House prices in cities tend to be higher than the average price in their region. The attraction of shopping and leisure facilities, as well as a short commute for workers means that there will always be demand to live in cities."

The firm also highlighted that smaller cities have tended to perform better than their larger counterparts, with nine of the top ten having populations of less than 300,000.

However, the chief economist of the Bank of England, Charlie Bean, is reported to have said that the housing market could be vulnerable to any broader economic downturn, which could affect prices.