Demand from new buyers in Northern Ireland’s housing market rose at the fastest rate in nearly three years in August, a sentiment survey shows.
And it comes at a time when stock levels - one of the biggest challenges facing potential buyers - continue to edge upwards.
The latest Royal Institution of Chartered Surveyors (Rics) and Ulster Bank residential market survey, which takes a monthly snapshot of the thinking of property professionals in the region, painted a generally sunny picture.
A net balance of 53% of Northern Ireland respondents reported that new buyer enquiries rose through the month of August. This is up from 38% in July, and the highest balance seen since November 2021.
On the supply front, 54% of local respondents reported that supply levels rose through August, the highest balance seen since the pandemic.
That in turn led to surveyors seeing a rise in sales in the most recent survey, and they anticipate this upwards trajectory will continue at least over the next three months.
On pricing, 75% of surveyors in the north reported rises over the past three months, outperforming other UK regions.
Rics’ regional residential property spokesman Samuel Dickey said: “Interest rate cuts are boosting confidence, but the most significant factor impacting on the market continues to be the fact that demand is outstripping supply.
“This has been a long-standing challenge, and whilst an increase in supply to the market was reported in August, we are also seeing demand increasing, which explains the ongoing upward pressure on prices.
“This is also a dynamic evident in the rental market. Anecdotal evidence points the rental market continuing to face the same pressures on the supply front, which is pushing up rents.”
Stephen Lavery, director at Ulster Bank, added: “The findings of this month’s survey very much tally with our own experiences as the number of mortgage enquiries we are dealing with continues to rise. It is welcome that the latest survey reported a rise in supply as this was one of the biggest challenges facing potential buyers.
“Overall, the survey paints a largely positive picture of the local housing market and it is evident that recent cuts to interest rates are continuing to provide a boost to confidence and optimism levels.”
On the wider UK picture, Rics chief economist Simon Rubinsohn said: “The latest survey captures an improvement in sentiment over the past month in the wake of the modest decline in mortgage rates with buyer interest improving, albeit from a relatively low base, and stock levels edging up.
“However, anecdotal remarks from respondents still demonstrate the need for realistic pricing to get deals done with uncertainty both around the scope for further interest rate cuts and the likely contents of the forthcoming Budget keeping the mood in check.
“Affordability remains an issue in the sales market even with somewhat cheaper finance now available but the picture appears even more acute in the lettings market where the amount of rental stock continues to diminish.
“Contributors continue to point to landlords looking to scale back their portfolios, which will inevitably increase the imbalance that already exists in the market.”
