Glimmer Of Hope In NI Housing Market As UK Figures Plummet

A survey has confirmed that Northern Ireland's once booming housing market faces a difficult and uncertain future - but suggests a falling market may have levelled out.

The Royal Institution of Charters Surveyors/Ulster Bank report confirmed problems but has shown a glimmer of hope amid heightened fears in the market.

According to the latest findings, 71% of those surveyed reported falling prices for last month compared to 95% in February.

RICS Northern Ireland Housing Spokesman, Tom McClelland, said: "Whilst the balance of chartered surveyors reporting price deflation in the rest of the UK has taken a turn for the worse, the survey reports that price falls in Northern Ireland, although still significant, have been easing back.

"Contributors to the survey in Northern Ireland are reporting a continuing rise in viewing numbers as well as signs of improving demand. The increase in demand is probably seasonally driven and may therefore continue into the coming months, depending on the Bank of England's willingness to reduce interest rates further and mortgage lenders' willingness to pass on any reductions."

Ulster Bank Head of Mortgages, Derek Wilson, added: "Indications of an easing back in local house price falls is encouraging and will help create confidence. The next few months will be very important as many potential buyers will be considering at what point it is best to enter the market."

The new survey claimed that one third (29%) of Northern Ireland respondents said that prices stayed the same. Just over a third (32%) said that prices fell by up to two per cent while 12% said that prices had been falling by between two and five per cent.

The report also disclosed that 27% said that prices had fallen by more than 5%.

In the UK as a whole, the balance of chartered surveyors reporting price falls was 78.5% in March compared to 65.7% in February.

House prices are falling to their worst levels in 30 years with a record number of chartered surveyors reporting a drop in the cost of property during March.

The RICS UK Spokesman Jeremy Leaf said: "The slowdown in prices is directly attributable to a lack of available finance which has hit demand. However, until new supply increases dramatically a significant crash remains unlikely."

Surveyors reported that prices fell at a faster pace than during the previous month in all regions of England and Wales, except for Yorkshire and Humberside.

Scotland remains the only area of the UK that is still seeing house price rises, with just 4% more surveyors saying values are still going up there than those who think they are falling, compared with 10% more in February. But the group stressed that a shortage of homes being put up for sale should prevent a 1990s-style house price crash.

RICS said the fact that recent interest rate cuts were not being passed on to new borrowers suggested demand was unlikely to improve soon.

(CD/JM)(BMcC)