Reduced supply and increased demand are pushing up local house prices, according to the latest RICS and Ulster Bank Residential Market Survey.
February was the 21st month in a row that average Northern Ireland house prices rose, according to the survey, and surveyors expect the trend to continue. Transaction volumes have also been edging up, and surveyors expect further increases in the months ahead.
RICS NI Spokesman, Samuel Dickey commented……‘With new buyer enquiries continuing to rise at a faster rate than new vendor instructions, this is creating upward pressure on prices. Indeed, the gap between demand and supply appears to be widening as more potential buyers have been coming into the market after Christmas. However, this will likely rebalance at least to some extent as we move into the spring, when more properties tend to come onto the market. This should also lead to an increase in transactions.
It should be remembered though that there is significant variation in the market, notably between Greater Belfast and more rural areas. Also, prices, whilst recovering, remain significantly below their peak, and transaction volumes remain at low levels historically. Overall, RICS expects average Northern Ireland house prices to rise by around 4% this year.’
Derek Wilson, Head of Lending Products at Ulster Bank commented…..’‘The latest figures from the Council of Mortgage Lenders show that that there were 13,000 mortgage loans in Northern Ireland in 2014, an increase of 30% on 2013. At Ulster Bank, we have experienced continuing strong mortgage demand into the beginning of this year. We want to offer choice to customers and to support them in making the financial decisions that are right for them. That’s why we have launched our biggest–ever range of mortgage options, with reduced rates across our fixed–rate mortgage suite, and a new seven–year fixed range.
In terms of prices, a net balance of 65% of Northern Ireland surveyors said that prices rose in the past three months. This was higher than any other UK region. A net balance of 43% said that they expect prices to continue rising in the three months ahead’.
In terms of transactions, a net balance of 8% of local surveyors said that these rose in February, with a net balance of 37% expecting them to rise in the three months ahead.
Source: RICS Website – Date March 2015
