Business

General election blamed as NI house sales fall for first time in nine months

Offsetting a fall in sales is a recorded rise in enquiries from potential buyers last month
Offsetting a fall in sales is a recorded rise in enquiries from potential buyers last month Offsetting a fall in sales is a recorded rise in enquiries from potential buyers last month

POLITICAL uncertainty caused by tomorrow's general election contributed to a fall in the number of house sales last month it has been claimed.

Newly agreed house sales eased back last month, the first recorded fall in nine months, according to the RICS (Royal Institution of Chartered Surveyors) and Ulster Bank Residential Market Survey.

Anecdotal evidence suggests that, potentially, some buyers were adopting a ‘wait and see approach’, with the general election a factor.

Offsetting a fall in sales is a recorded rise in enquiries from potential buyers last month and expectation from local surveyors that sales activity will pick up and prices increase in the three months ahead.

The balance of local surveyors (+23%) expect sales activity to pick up in the same period.

While it was the first time in nine months the balance of Northern Ireland surveyors didn’t report a rise in newly agreed sales the fall appears to have been only a marginal one, with a net balance of -6 per cent reported.

In terms of prices, the balance of surveyors (+48 per cent) reported an increase in the May survey, meaning that 48 per cent more surveyors said that prices rose in the past three months than those who said they fell.

Surveyors also expect prices to continue to edge up in the three months ahead (a net balance of +20 per cent).

RICS residential property spokesman Samuel Dickey said the figures were encouraging.

“Surveyors are reporting an increasing number of potential buyers and potential sellers coming to the market, and expect this to translate into increased sales activity in the months ahead, despite an easing back in May. It is particularly encouraging to hear reports of more properties coming onto the market, which should help ease some of the supply issues that have long prevailed.”

Managing director of personal banking at Ulster Bank, Sean Murphy said the figures showed people retain a strong desire to own their own home

"We continue to see a good flow of mortgage interest, in line with the latest RICS figures which show a rise in new buyer enquiries. Buying or moving home remains an attractive option for many people, as, despite rising prices, buying in Northern Ireland remains relatively very affordable," he added.