The demand for housing in Northern Ireland continues to rise, however the supply of available homes seems to have decreased according to the latest RICS (Royal Institution of Chartered Surveyors) and Ulster Bank Residential Market Survey.
A net balance of +27% of respondents to the latest survey said there were more new buyers in the market during February while the net balance for instructions to sell was -28%. This suggests that demand is greater than supply.
This lack of supply appears to be impacting sales which were reported to be flat during February. In comparison, +28% reported a rise in newly agreed sales in January. It also appears to be continuing to impact on prices, pushing up values, with respondents pointing to ongoing price increases. A net balance of +85% of respondents to the latest survey said that prices increased.
In terms of the outlook a net balance of +28% of respondents expect a rise in sales over the next three months and a net balance of +56% of respondents expect prices to rise, which may be due to the supply and demand imbalance.
NI, like all parts of the UK, is anticipated to see continued strong growth in house prices over the next 12 months.
Samuel Dickey, RICS Northern Ireland Residential Property Spokesman, says: “We’re seeing the same pattern as we saw in the latter half of 2021 with new buyer enquiries on the rise but the fall in new instruction indicates that the supply is not in line with the demand. In saying that, there is a sense of optimism for the market with the expected rise in new sales over the coming months suggesting that surveyors do expect more stock to come on the market.”
Terry Robb, Head of Personal Banking at Ulster Bank added: “One of the trends we are seeing is that new buyers are becoming more energy efficiency conscious, potentially due to the increase in the cost of living. Research also suggests that home buyers are becoming more environmentally conscious. We have therefore introduced EPC (Energy Performance Certificate) ratings into our digital mortgage hub for customers, supporting our pledge to help customers to become more energy efficient.”
