Surveyors in Northern Ireland are upbeat when it comes to the residential sales outlook over the coming months according to the latest Royal Institution of Chartered Surveyors (RICS) and Ulster Bank Residential Market Survey as both supply and demand continue to edge upwards.
A net balance of 46% of NI respondents expects sales to rise over the third quarter of 2024, up from the net balance of 36% that was seen in the survey previous, and the highest across all of the UK regions.
Prices are also expected to continue to tick upwards. A net balance of 64% of NI respondents reported a rise in prices over the past three months, and a net balance of 70% of survey respondents anticipate that prices will rise through Q3. This is the highest this balance has been in over three years, up marginally from May when the net balance was reported to be 68%.
With regard to demand, whilst this continues to edge higher, it is doing so at a slighter softer rate in the latest survey than in the previous report. A net balance of 30% of surveyors in Northern Ireland reported that new buyer enquiries rose through the month of June. Although this is less than the 48% that was seen in May, it is amongst the highest balances across all of the UK regions.
Supply also increased but at a slightly reduced rate. A net balance of 32% of NI respondents noted a rise, compared to 45% in May. The latest figure is, however, the highest balance across all UK regions, with the second highest balance seen in the South West with a net balance of 12%.
Following the supply and demand trend, newly agreed sales were also up in number, but the rate of increase eased. A net balance of 33% of respondents in NI noted a rise in sales through June, down from 46% in May.
Samuel Dickey, RICS Northern Ireland Residential Property Spokesman, comments: “The first half of 2024 has been steady in Northern Ireland’s residential market, with prices edging up and good levels of demand evident. Anecdotally we know though that there is quite a lot of variation in the market, with some areas of NI seeing stronger demand than others, and prices rising more firmly in popular locations. But overall, it’s encouraging to see respondents in NI remaining optimistic about activity levels over the coming months.”
Terry Robb, Head of Personal Banking at Ulster Bank says: “The latest survey points to an ongoing confidence in the market with Northern Ireland again faring better than the overall UK market, and surveyors here expecting sales levels to tick up in the months ahead. Similarly, we expect good mortgage demand, based on the demand in the housing market aligned with recent reductions in our mortgage rates. The challenge for the market though remains the fact that many potential borrowers continue to experience a shortage of quality homes to choose from.”
