PropertyPal has today released the results of the performance of the Northern Ireland residential housing market during Q2 2021.The full report can be accessed via: https://bit.ly/Q2HMTP
NOTE: ANNUAL COMPARISONS FOR SALES VOLUMES AND SUPPLY LEVELS ARE RELATIVE TO THE PERIOD IN 2019 DUE TO THE EFFECT OF THE HOUSING MARKET CLOSURE BETWEEN MARCH-JUNE 2020.
House prices and sales market
- There were almost 9,200 properties ‘sale agreed’ over the previous 3 months, 24% more than the same period in 2019.
- Sales of 4 and 5+ bed properties increased by over 35% compared to Q1 2019 compared to 2 and 3 bed properties which increased by 18%.
- Belfast remains the most popular place to purchase, recording over 1,850 sales followed by Ards & North Down (1,140) and Armagh, Banbridge and Craigavon (1,020).
- Annual house price growth has accelerated to 7.3% with prices increasing by 2.1% during the previous 3 months at the end of 2020. The average advertised property is now valued at £179,800.
- House prices increased by 7.4% compared to slower growth for Apartments (5.9%) over the previous 12 months.
- All council areas experienced rising prices over the previous 12 months. House prices increased at the fastest rate in Ards & North Down (13.6%), Mid & East Antrim (10.9%) and Causeway Coast & The Glens (10.7%)
- There were close to 8,230 properties added to the market during Q2 2021, approximately 3% greater than the same period in 2019. This is the first quarter since Covid’s impact that new listing inventory has been greater than the comparable period. Nonetheless, supply shortages remain considerably lower than ‘normal’ periods with total inventory of properties for sale down 33% compared to Q2 2019.
- The rental market has remained buoyant as heightened demand and fewer available properties has pushed rents upwards by 1.3% over the previous 3 months and an annual rate of 5.8%
- The average rent in Northern Ireland is £682 per month, of which houses are £674 p/m and apartments £700 p/m.
- Nine out of the eleven council areas experienced rising rents in the last 12 months with the strongest appreciation in Ards and North Down (7.7%).
- There were approximately 4,350 new rental properties listed in Q4 2020, 9% fewer than the same period in 2019. The total inventory of rental properties is down 25% compared to Q1 2019.
Jordan Buchanan, Chief Economist at PropertyPal commented on the performance of the housing market:
“Both sales and pricing activity accelerated during the second quarter of the year. Consumer confidence is improving in line with the easing of restrictions and the wider economic recovery. Borrowing costs are exceptionally low by historic standards and ongoing lender competitiveness suggests this may improve further in the coming months. Underlying demand remains at exceptionally high levels and reduced property stock has put upward pressure on prices, particularly for larger properties in desirable areas. Whilst there are some early signals that buyer demand is beginning to moderate, the overall near-term activity is expected to be strong.”
Jordan further commented on the performance of the rental market:
“The ongoing supply/demand imbalance is most pronounced in the rental sector. Record high demand has failed to be met with significantly constrained supply levels. There was an average of 44 enquiries sent to estate agents for each rental property on PropertyPal during the previous 3 months. This compares to an average of 17 enquiries during the same period in 2019. Improving mortgage market conditions with more lenders offering mortgage options to those with low deposit levels may appeal to first time buyers who are currently renting. Failing a significant uplift in the number of rental properties coming to the market, or an unexpected drop in demand, it is likely the near-term outlook will continue to put upward pressure on rents.”