· Sales of 4 and 5 bed properties increased by over 50% compared to last year.
· Belfast remains the most popular place to purchase, recording over 1,300 sales followed by Ards & North Down (930) and Armagh, Banbridge & Craigavon (815).
· Annual house price growth has increased to 1.8% with prices increasing by 1.1% during the previous 3 months after ‘lockdown.’ The average advertised property is now valued at £171,300.
· Annual house price growth of houses has remained stable at 2.1% compared to Apartments whereby prices have fallen by 1.3% over the previous 12 months.
· House prices increased by 3.1% in Ards & North Down over the previous 3 months, the strongest growth across Northern Ireland.
· There were 6,776 properties added during Q3 2020, approximately 12% more than the same period in 2019 as supply has returned following the re-opening of the housing market in June 2020.
Rental market
· The rental market has remained buoyant as typical rents accelerated by 1.3% over the previous 3 months and an annual rate of 3.7%
· The average rent in Northern Ireland is £657 per month, of which houses are £646 and apartments £678.
· There were 2,575 new rental properties listed in Q3 2020, 15% fewer than the same period in 2019.
Jordan Buchanan, Chief Economist at PropertyPal commented on the performance of the housing market during the third quarter of the year:
“The post-lockdown housing market has displayed considerable resilience. House prices have increased, engagement on PropertyPal is at an all-time high and there were close to 7,200 properties sold in the last three months, an increase of 32% compared to last year. The rebound in activity reflects several contributory factors including, stamp duty holidays, favourable interest rate environment, pent-up demand over lockdown and behavioural shifts as buyers have revaluated their housing needs.
“Emerging evidence shows wealthier demographics are driving demand as sales of 4 and 5+ bedroom properties have increased by more than 50% compared to this time last year. First time buyers continue to experience a credit crunch and are increasingly excluded from accessing mortgage finance as most lenders now require upwards of 15% deposits – equivalent to approximately £20,000 for a typical first home.
“The near-term housing market activity remains positive and is likely to be a stronger end to the year compared to ‘normal’ periods. However, tighter restrictions will hamper business activity and the labour market is expected to weaken later this year as government support unwinds. This will negatively impact economic performance and have implications for the housing market performance in 2021.”
Jordan further commented on the performance of the rental market:
“The rental market has remained strong in the second half of this year as demand levels have accelerated due to economic uncertainty. Rents are increasing against a backdrop of falling incomes which is creating affordability pressures for many households. The labour market profile suggests the pending economic damage is likely to have a greater impact on private renters than home-owners and this may lead to falling rents over the coming 6 months.”
PropertyPal's Jordan Buchanan
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