Property prices in Northern Ireland are expected to increase faster than anywhere else in the UK in the coming months, industry experts claim.
The Royal Institution of Chartered Surveyors (RICS) predicts a 4% rise due to a shortage of available homes and more new buyer inquiries.
The RICS and Ulster Bank residential market study found that properties are not coming onto the market in substantial numbers.
Spokesperson for the RICS, Samuel Dickey, says that the local market is continuing its recovery in terms of activity and average prices: “There are economic challenges ahead, which will likely act as headwinds for the housing market, but our view remains that prices will increase over the course of the year by some 4%.”1
Head of Lending Products at Ulster Bank, Derek Wilson, says that after a “muted” first quarter, April and May had been stronger concerning activity.
“These have been robust months for mortgage demand, and that trend appears to be continuing into June,” he adds.
Wilson continues: “Our aim is to offer choice to customers and to support them in making the financial decisions that are right for them. That’s why we have launched our biggest ever range of mortgage options, with some of our lowest ever rates, as well as a new seven-year fixed range.”1
A net balance of 60% of Northern Ireland surveyors stated that prices increased in the last three months – a higher figure than all other UK regions. Additionally, 43% expect them to continue rising in the next three months.
Regarding newly agreed sales, 35% of local surveyors said they grew in April and 8% predict they will increase in the coming three months.
After a continuous downturn from 2007-13, confidence in the Northern Ireland housing market has picked up in 2015, particularly in the private resale and new development sectors.
Experts have witnessed strong demand in the new homes sector in the last six to nine months. This is due to considerably less building during the recession and buyers being more eager to buy new homes, believing they are secure investments.