House prices on the rise as bidding heats up

Momentum in the UK market continued to ebb as sales dipped slightly and buyer interest remained flat in April. However, Northern Ireland saw prices and sales pick up, with buyer interest also remaining strong.

Of all the UK regions, only the North West of England recorded a higher price balance than Northern Ireland last month. Newly agreed sales and new buyer enquiries also both rose for the eighth consecutive month, according to the survey.

On the supply side, the number of new instructions to sell rose for the third month in a row – indeed at the fastest rate in the UK. However, this is from a low base, and concerns around a shortage of supply persist, with new buyer enquiries continuing to rise at a faster rate than instructions to sell.

RICS Residential Property Spokesman, Samuel Dickey, says: “The market will be encouraged by any signs of an improvement in supply, however, anecdotally, concerns persist, with surveyors pointing to a lack of choice for buyers and competitive bidding on good properties in popular areas. Whilst we are seeing evidence of more houses being put on the market, we are also seeing an increasing number of potential buyers active. It remains to be seen if this imbalance can be addressed in May and June, which are traditionally very busy months.”

Sean Murphy, Managing Director, Personal Banking at Ulster Bank, says: “The local housing market appears to have entered the second quarter of the year much as it finished the first, with prices and sales rising, and the expectation that this will continue. Our own expectation at Ulster Bank is for strong mortgage demand to continue to be evident. Despite rising prices, buying a house in Northern Ireland remains relatively very affordable, and we see evidence that people retain a strong desire to own their own home.”