RICS and Ulster Bank Residential Market Survey – September 2023
House prices in Northern Ireland continued to rise through the month of September, according to the RICS (Royal Institution of Chartered Surveyors) and Ulster Bank Residential Market Survey. Sales activity was also reported to have picked up, but the number of potential buyers active in the market was broadly flat.
A net balance of 19% of NI-based respondents noted an increase in house prices in the September survey, up from 9% in August, which was the lowest the figure has been, outside of Coronavirus restrictions, since 2013.
With regard to surveyors’ outlook on pricing, a net balance of 40% of NI respondents expect prices to rise over the next three months. NI is the only UK region that sees this balance in positive territory, with the UK average reading at -48%.
In terms of activity, the number of house sales in NI was reported to have picked up in September, having fallen for the previous three months. A net balance of +27% of respondents was reported regarding newly agreed sales, up from -23% in August.
However, current demand was said to be broadly flat, with a net balance of -3% of Northern Ireland respondents reported regarding the number of newly agreed sales. This compared to -17% in August and -35% in July.
More properties are coming onto the market though, according to respondents. At +18%, the net balance for instructions to sell was at its highest during September in over two years.
This increase in supply, despite flat demand, appears to be leading surveyors to expect sales activity to increase over the next three months. A net balance of 22% for three-month sales expectations is the joint highest it has been since July 2022.
Samuel Dickey, RICS Northern Ireland Residential Property Spokesman, says: “The sales market in Northern Ireland appeared to be relatively stronger in the September survey when compared to previous recent months, with both sales and prices rising. The Northern Ireland picture certainly appears to be stronger than elsewhere in the UK and surveyors here are more confident in the outlook than their UK counterparts. We also continue to hear anecdotally from local surveyors that the rental market continues to growth apace with extremely strong demand from good-quality applicants. The big issue in the rental market is supply, with an increasingly large number of applicants per property.”
Terry Robb, Head of Personal Banking at Ulster Bank, added: “At Ulster Bank, we have seen good post-summer demand for mortgages. We know that many people in Northern Ireland continue to want to own or move home, and we are working to support customers with their homebuying aspirations.”
