NI Surveyors Remain Optimistic About Upcoming Residential Sales

A recent survey Ulster Bank and the Royal Institution of Chartered Surveyors (RICS) has revealed that Northern Ireland surveyors are optimistic about residential sales outlook in coming months, as supply and demand rise.

A net balance of 46 per cent of NI respondents expects sales to rise over the third quarter of 2024, up from the net balance of 36 per cent that was seen in the survey previous, and the highest across all of the UK regions.

Prices are forecasted to continue their upward trend. Sixty-four per cent of respondents in Northern Ireland noted a price increase over the past three months and seventy per cent anticipate further rises in Q3. This marks the highest level in over three years, slightly up from May's reported net balance of 68 per cent.

With regard to demand, whilst this continues to edge higher, it is doing so at a slighter softer rate in the latest survey than in the previous report. A net balance of 30 per cent of surveyors in Northern Ireland reported that new buyer enquiries rose through the month of June. Although this is less than the 48 per cent that was seen in May, it is amongst the highest balances across all of the UK regions.

Supply increased, albeit at a slower pace, with 32 per cent of respondents in Northern Ireland reporting a rise compared to 45 per cent in May. This figure marks the highest balance across all UK regions, with the second highest seen in the South West at 12 per cent.

In line with the supply and demand trend, newly agreed sales also rose, though the rate of increase moderated. In June, 33 per cent of respondents in NI noted an increase in sales, down from 46 per cent in May.

Samuel Dickey, RICS Northern Ireland Residential Property Spokesman, stated: "The first half of 2024 has been steady in Northern Ireland’s residential market, with prices edging up and good levels of demand evident. Anecdotally we know though that there is quite a lot of variation in the market, with some areas of NI seeing stronger demand than others, and prices rising more firmly in popular locations. But overall, it’s encouraging to see respondents in NI remaining optimistic about activity levels over the coming months."

Terry Robb, Head of Personal Banking at Ulster Bank commented: "The latest survey points to an ongoing confidence in the market with Northern Ireland again faring better than the overall UK market, and surveyors here expecting sales levels to tick up in the months ahead. Similarly, we expect good mortgage demand, based on the demand in the housing market aligned with recent reductions in our mortgage rates. The challenge for the market though remains the fact that many potential borrowers continue to experience a shortage of quality homes to choose from."