Fewer house sales were reported in September amid higher mortgage interest rates according to the latest Royal Institution of Surveyors (RICS) Residential Market Survey. However, respondents are still optimistic about the local market in the final quarter of the year due to good underlying demand.
The net balance (-18%) of NI respondents reported a fall in newly agreed sales in September, down from the net balance of 40% seen in the August survey. Meanwhile, a net balance of 7% reported a rise in new instructions to sell, up slightly from August.
On the demand side, a net balance of 8% of NI respondents noted a rise in new buyer enquiries last month, and, looking ahead, a net balance of 55% expect sales to rise over the next three months.
With regard to values, a net balance of 83% of local respondents report that house prices in Northern Ireland continued to rise over the last three months, which is largely in line with the balance seen in the survey previous. And, a net balance of 68% expect prices to increase through the final three months of 2026.
Samuel Dickey, RICS NI Residential Spokesperson, said: “Northern Ireland’s housing market remains resilient amid the challenges that its facing. Average interest rates on mortgage deals have been rising, putting pressure on new buyers, which we’re seeing across the market. And Northern Ireland faces its own set of challenges in that we simply don’t have enough homes to meet the demands of the market. But with underlying demand still strong, the limited supply will act to support prices, and indeed likely some price growth, over the months ahead.”
Commenting on the UK picture, RICS Head of Market Research and Analysis, Tarrant Parsons, said: “A renewed rise in interest rate expectations has created a fresh headwind for the housing market, with buyers becoming a little more cautious and sales activity losing some momentum this month. Even so, the latest results do not point to any significant shift in direction. Rather, they suggest the market may need to contend with a somewhat longer period of subdued activity as households adjust to the prospect of borrowing costs remaining higher than previously anticipated.”