Housing market enters 2018 on firm footing

The latest residential market survey from the Royal Institution of Chartered Surveyors (RICS) and Ulster Bank indicates that while the UK market showed a lack of momentum in December, Northern Ireland in contrast appears to be entering 2018 on a firm footing.

Northern Ireland respondents indicated that prices here continued on an upward trajectory in December, and local surveyors remain amongst the most optimistic in the UK regarding the near-term price outlook.

And whilst the newly agreed sales data eased back slightly in December, local surveyors said interest from buyers rose leading to an expected rise in sales activity in the near term.

However, supply constraints appear to be evident, with new instructions to sell broadly flat in December, whilst new buyer enquiries rose - this indicates a gap between supply and demand.

Looking 12 months forward, the balance of Northern Ireland surveyors expect prices to be higher in a year’s time, though there is some evidence of an easing in 12-month expectations regarding prices.

“Surveyors appear confident in the near-term outlook for the market in Northern Ireland, with interest from potential buyers evident, and the gap between supply and demand likely to put some upward pressure on prices,” said RICS residential property spokesman Samuel Dickey.

“Looking further ahead, clearly there are some challenges expected on the political front, alongside a potential squeeze on consumers due to inflation and further potential movements in interest rates.

“However, despite some uncertainty, surveyors expect both prices and sales activity to be higher in a year’s time.”

Sean Murphy, MD for personal banking at Ulster Bank said “The RICS figures are in line with other economic indicators, including the latest Ulster Bank PMI, which shows that Northern Ireland’s private sector ended 2017 with business activity rising and firms’ order books expanding at their fastest rate in over three years.

“Clearly the Northern Ireland housing market enters 2018 with good momentum and relative optimism for the year ahead, and our own expectation is for good mortgage demand from home buyers, movers and those remortgaging.”