The number of new properties coming onto NI’s housing market continued to rise according to the latest Royal Institution of Chartered Surveyors (RICS) residential market survey. But whilst surveyors expect sales to continue increasing over the next three months, they expect this at a more modest rate than seen previously.
A net balance of 54% of NI surveyors reported a rise in new instructions to sell through July, which is the highest the balance for supply has been since May 2024.
On the demand side, a net balance of 13% of NI respondents noted a rise in new buyer enquiries which is up from the net balance of 4% seen in the June survey.
However, although both buyer interest and seller listings were on the rise, sales activity was seen to be very modest in July with a net balance of 2% of surveyors in NI reporting a rise in sales in the most recent survey.
And looking ahead, whilst surveyors expect sales to continue rising, the optimism has moderated. A net balance of 8% of survey respondents expect sales to continue rising over the next three months, which is the lowest this balance has been since August 2023.
On the pricing front, NI surveyors continue to report a rise in prices. A net balance of 89% of respondents in NI report that prices continued to rise over the past three months, which was a similar balance as seen in the survey before. However, the pricing balance looking ahead has softened slightly. A net balance of 37% of NI respondents expect prices to continue rising over the next three months, which whilst remaining firmly in positive territory, is down from the 53% seen in the June survey.
Samuel Dickey, RICS NI Residential Spokesperson, said: “Whilst there are some signs of moderation, the market in Northern Ireland continues to outperform the rest of the UK in terms of price increases and new buyer enquiries. The balance for agreed sales is also still positive, and local respondents are more positive about the sales outlook than in almost all other regions. In this most recent survey, it’s also encouraging to see that surveyors are reporting more properties coming to the market in Northern Ireland. Whilst a combination of geopolitics, the domestic political climate and the cost of mortgage finance are continuing to weigh on sentiment across the UK, there is clearly still confidence in the Northern Ireland market. And whilst there are signs that new listings are increasing, supply pressures remain a defining feature of the market.”
Commenting on the UK picture, RICS Chief Economist, Simon Rubinsohn, said: “The housing market remains subdued, and while that is not usual over the summer months, it is clear from the RICS seasonally adjusted data, that the combination of geopolitics, the domestic political climate and the cost of mortgage finance are continuing to weigh on sentiment.
“Significantly, the forward-looking metrics also remain downbeat, which is not the sort of climate likely to encourage housebuilders to step on the gas on existing sites or in land-buying, as highlighted in recent trading statements from developers. Meanwhile, feedback from respondents to the RICS survey is continuing to draw attention to the impact of latest round of regulation on the rental market with the key indicator of new instructions pointing to a further drop in supply.”