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Limited supply pushing Northern Ireland house prices still higher

A limited number of houses for sale are pushing prices up, says latest survey from RICS and the Ulster Bank
A limited number of houses for sale are pushing prices up, says latest survey from RICS and the Ulster Bank A limited number of houses for sale are pushing prices up, says latest survey from RICS and the Ulster Bank

HOUSE prices in Northern Ireland are rising at a faster rate than in most other UK regions according to the latest Rics and Ulster Bank Residential Market Survey.

A limited supply of residential properties has been cited as the main reason behind the price hike as new buyers enter the market quicker than new properties become available to sell.

Only East Anglia in England showed a higher rise in average house prices over the past three months.

Looking to the future, Northern Ireland surveyors remained positive, with three-month price expectations strengthening.

Commenting on the June bulletin, Rics Northern Ireland residential property spokesman Samuel Dickey said optimism in the market was such that the usual July lull was not anticipated to the same degree this year.

"Surveyors are telling us that demand remained strong in the local housing market in June, whilst supply remains restricted. Almost inevitably, this is creating upward pressure on prices," he said.

"As always, we would anticipate a lull in activity during July, but respondents remain relatively optimistic about sales over the next three-month period."

This confidence was echoed by Derek Wilson, head of lending at Ulster Bank which has recently launched its biggest-ever range of mortgage options for home-owners.

"With the first half of 2015 having drawn to a close, we’re seeing a positive picture for the local housing market, which has built momentum throughout the year - particularly in the last three months," he said.

"As a bank, we offer choice to customers and to support them in making the financial decisions that are right for them. That’s why we have launched our biggest-ever range of mortgage options, with some of our lowest-ever rates, as well as a new seven-year fixed range."

The survey found a net balance of 69 per cent of Northern Ireland surveyors reported price rises over the past three months - with 45 per cent expecting prices to continue in an upward trajectory over the next three months.

Meanwhile, 30 per cent of surveyors expect newly agreed sales to continue to rise in the three months ahead.

A net balance of 15 per cent of surveyors also said new instructions increased, while 37 per cent recorded an increase in new buyer enquiries.