Demand for residential property continued to increase through the month of August according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey, but at a more modest rate than seen in the month previous.
A net balance of 21% of surveyors in NI report that new buyer enquiries rose through August. Whilst demand continued to increase, it was at a slower rate than seen previously (down from the net balance of 39% that was seen in July).
Looking at supply, surveyors in NI report that new instructions to sell rose last month, but similar to demand, at a slower rate than seen in July. A net balance of 23% of surveyors reported that there was an increase in supply, down from the 42% that was seen in the survey previous.
A net balance of 7% of NI surveyors reported that sales rose through the month of August, which is the second consecutive month this balance has been in positive territory. And surveyors appear to be optimistic on the sales outlook too as a net balance of 40% of respondents expect sales to rise over the next three months.
When it comes to pricing, NI respondents note an upward trend once again. A net balance of 93% of NI respondents reported a rise in house prices over the past three months. And this trend continues looking forward as a net balance of 72% surveyors in NI anticipate that prices will increase over the next three months, down from the 97% seen in July.
Samuel Dickey, RICS Northern Ireland Residential Property Spokesman, says: “Although through August the rise in demand for residential property in NI was more modest, it’s encouraging to see that sales have continued to rise. Whilst we’re seeing that supply levels are increasing, it’s still nowhere near the levels that we need to meet private and public housing needs. The latest Land and Property Services statistics reveal that earlier this year work began on 2,248 homes, which is the highest this figure has been since 2018, and whilst this is promising, there is still much to be done.”
Commenting on the UK picture, Tarrant Parsons, Head of Market Research and Analysis at RICS, said: “With buyer demand easing and agreed sales in decline, the housing market is clearly feeling the effects of ongoing uncertainty. Concerns over the wider economic and fiscal outlook, combined with questions around the future path of interest rates amid stubbornly high inflation, are weighing on sentiment at this time.“