THE rising cost of living, and in particular the rising cost of fuel, has been the main topic of conversation for many households over the last number of weeks, especially since petrol prices are likely to reach £2 per litre in the coming days.
It is not surprising therefore that pressure is starting to mount on employers to increase salaries in line with underlying inflation. National statistics show that without bonuses, workers saw an average 4.2 per cent wage increase in the first three months of the year, well short of the 7 per cent inflation rate recorded during this period.
The report also revealed that the unemployment rate fell to 3.7 per cent, the lowest since 1974. With job openings rising to a new high of 1.3 million, it means there are more vacancies than unemployed people in the UK for the first time since records began.
However, it is all too easy to look at snap shots of the economy with headlines like the “FTSE 100 falls back again with continuing inflationary pressure and weaker consumer demand” without looking at the broader picture, which shows that despite the ongoing headwinds and peaks and troughs in the market, the FTSE 100 index has grown by 6.8 per cent over the last 12 months.
Despite these headwinds, the local housing market continues to push higher, with the Ulster University House Price Index showing the average price of a house in the region stood at £202,325, up 9.7 per cent compared to 2021. Terraces and town houses saw the biggest jump, up some 13.2 per cent on the year, while semi-detached houses climbed 7.1 per cent and detached by 4.2 per cent. Again, however, the question posed on by most is can this increase continue.
In the Northern Ireland commercial property market we are continuing to see strong activity in certain areas. The 34,000 sq ft Montgomery House office block has now sold to a local charity for in excess of £7m, and we are seeing continuing demand for warehousing/logistics space, with rents rising to levels not seen before in our local market, for quality buildings with eaves heights in excess of 6 metres.
Demand for retail warehousing from investors continues with the sale of the 18,000 sq ft Pentagon retail park in Ballymena completing recently, and the 50,000 sq ft Laganbank retail park being brought to the market with a price tag of £5.875m.
The rising cost of fuel has also focused our attention on alternative means of travel. The electric vehicle market has seen a transformation in the last few years, with growth in this sector at unprecedented levels.
In Northern Ireland alone, the growth of ultra-low emission vehicles increased by over 82 per cent in 2021. It is also notable that we have the lowest level of charging device provision in the UK, with 18 devices per 100,000 and the lowest level of fast charging devices in the UK with 1.2 per 100,000 of population.
It's therefore not surprising to see Fastned, Europe’s largest superfast charging company, on the hunt for new sites in Northern Ireland. Their goal is to give electric vehicle drivers the freedom to use their vehicles without having to charge them at home and to provide fast and efficient chargers at strategic locations throughout Northern Ireland.
With fuel prices unlikely to come down in the short term, one side effect has been to help disrupt the traditional motor manufacturing world and speed up the transition to electric vehicles. The new world of electric vehicle transportation will have ramifications for all types of residential and commercial properties.
Declan Flynn is managing director at Belfast commercial property agents Lisney.
