House sales rose at the fastest rate since early 2021 according to the latest results of the Royal Institution of Chartered Surveyors (RICS) and Ulster Bank Residential Market Survey, as house prices continued to edge upwards.
A net balance of 65% of surveyors in Northern Ireland reported that newly agreed sales rose through the month of July, up from 36% in June and 47% in May. This was the highest balance seen across all the UK regions.
Surveyors also remain optimistic on the sales outlook, with a net balance of 54% of respondents anticipating that sales will rise over the next three months.
House prices were also reported to have risen through the month of July. A net balance of 86% of NI respondents reported that prices have increased over the past three months. And prices are set to continue rising according to respondents with a net balance of 74% of surveyors in NI expecting prices to rise over the next three months.
NI surveyors also report that demand rose through July. A net balance of 36% of surveyors said that new buyer enquiries had risen, up slightly from June when the balance was reported to be 30%.
Respondents in NI also report that supply had risen, as a net balance of 36% of surveyors report an increase in new instructions to sell.
Samuel Dickey, RICS Northern Ireland Residential Property Spokesman, comments: “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. Although respondents in NI 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 says: “The latest survey points to positive news for the housing market in Northern Ireland with the region 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.”