Expectations for a house sales uptick over the next few months in Northern Ireland have reached their strongest levels since the start of 2021, according to surveyors.
A net balance of 54% of property professionals say they expect sales to rise over the next three months rather than fall, the Royal Institution of Chartered Surveyors (Rics) said in its latest market survey with Ulster Bank.
And it follows 65% of surveyors in the north reporting that newly-agreed sales rose during July - up from 36% in June and 47% in May, making it the highest balance seen across all the UK regions.
On prices, a hefty 86% of Northern Ireland respondents reported increases over the past three months, and 74% expect that trend to continue over the next three months.
The Bank of England base rate was cut from 5.25% to 5% last week, boosting expectations of a pick up in the housing market this autumn.
Rics said that in the rental market, the gap between demand and supply continued to widen in July. Demand continued to rise modestly, while landlord instructions fell.
While the growth rate of the gap slowed, the trend points towards rental prices continuing to increase, the report said.
Samuel Dickey, regional residential property spokesman for Rics, said: “It’s encouraging to see surveyors in Northern Ireland reporting an increase in supply and good demand which ultimately led to an increase in sales through the month of July and may be contributing to the optimism going forward.
“But although respondents here are more confident when it comes to sales and prices over the next year when compared to the rest of the UK, the supply of new build homes continues to be a concern as the house-building industry continues to navigate ongoing challenges such as planning delays, skills shortages and the ongoing waste water infrastructure deficit.”
Terry Robb, head of personal banking at Ulster Bank, added: “The latest survey points to positive news for the housing market, with Northern Ireland outperforming other areas of the UK in terms of newly agreed sales.
“This continues to tally with the number of mortgage enquiries we are dealing with, and it’s positive to see this interest coming from a range of different borrowers.
“While the recent reduction in the base rate has provided customers with increased levels of confidence and optimism, many buyers are still experiencing challenges, and so alleviating some of the problems around housing supply would inject further positivity into the market.”
Rics chief economist Simon Rubinsohn said: “Demand is continuing to run ahead of supply with many respondents to our survey noting that landlords are looking to reduce holdings in the face of an increasingly hostile environment for investment in the sector.”
