A LACK of new properties is pushing up prices in the north's housing market, according to a new industry report.
The latest RICS and Ulster Bank survey, which covers the last three months, shows that Northern Ireland prices continue to rise at the sharpest rate in the UK, with a net balance of 67 per cent reporting an increase.
The growth has been partly attributed to a lack of supply, which is also said to impacting upon activity.
The volume of properties coming onto the market was reported to be down marginally in July, according to the survey, while the indicators for new buyer enquires and newly agreed sales are subdued.
In spite of the mixed picture, the outlook for the market remains relatively positive, with prices expected to continue on an upward trajectory for the next three months, while sales expectations in the short-term have returned to positive territory.
Looking further ahead and surveyors forecast sales activity and prices to be higher in a year’s time, although a lack of supply could impact on the figures going forward.
RICS residential property spokesman in Northern Ireland, Samuel Dickey believes there are reasons to be positive about the latest data.
“Whilst, it appears that there continues to be variation in the market here across property types and in different locations, overall the data is more positive in Northern Ireland than in other parts of the UK," he said
"This is certainly the case regarding the price index. Evidence of demand levels being above supply levels in some areas of Northern Ireland is clearly a factor in this.”
Terry Robb, head of personal banking at Ulster Bank added:
“A range of surveys and reports have pointed to strong first-time buyer demand in Northern Ireland in 2019. This is something that is reflected in our mortgage lending and we think is likely to continue into the second half of the year as well. Growth in the home-mover market is perhaps more subdued. However, more properties coming onto the market would certainly provide better choice for those seeking to move house. Whether supply increases in the second-half of the year remains to be seen.”
