House prices are continuing to rise in Northern Ireland as a dearth of new properties drives the market beyond the reach of buyers.
That’s the message from estate agent’s body RICS and Ulster Bank which said a shortage of new houses being listed for sale was the most prominent theme of its latest survey.
More than 80% of agents survey said prices rose last month and half expect prices to continue rising in the next three months.
The news chimes with a recent report from Nationwide Building Society which said Northern Ireland house prices climbed by 12% in the year to the end of 2021.
Increasing demand for larger properties as a result of the Covid-19 pandemic had been one of the main reasons for gains posted earlier last year but there is growing evidence that it is the tightening supply picture that is the main reason for the latest rally, although the demand picture remains robust.
In December, 60% more Northern Ireland respondents to the survey reported a rise in the number of new buyers looking for a property.
Meanwhile, the rise in newly agreed sales was more modest with a net balance of 9% of respondents reporting an increase, not surprising result given the decline in new supply.
“Despite changes to stamp duty and interest rate rises in the second half of 2021, new buyer enquiries remained strong to the end of the year,” Samuel Dickey, RICS Northern Ireland Residential Property Spokesman, says. “However, a lack of stock continues to be the issue highlighted by surveyors as both holding back sales and pushing up prices. That said, there is a suggestion that there is scope for transaction numbers to edge up over the next few months.”
Demand for finance has remained strong, Terry Robb, Head of Personal Banking at Ulster Bank, said.
“We saw strong mortgage demand through 2021 and continue to offer 95% mortgages and a range of green mortgages this year.”
