Survey: Shortage of housing stock continuing to drive price growth in NI

A spike in September house sales ahead of the Stamp Duty holiday deadline, has contributed to a shortage in available stock.

A SHORTAGE of new property listings is continuing to drive up house prices in the north, according to a new survey of industry professionals.

The latest residential market survey from RICS (Royal Institution of Chartered Surveyors) and Ulster Bank revealed a lack of housing stock as the most prominent theme during December.

The survey found the imbalance between demand and supply continued to underpin the growth in house prices last month.

The latest official data published by the Office for National Statistics (ONS) on Wednesday, said UK-wide house prices in November were 10 per cent higher than the same month in 2020.

Official house price data in Northern Ireland is published on a quarterly basis. The last report put the average residential property at £159,109 for the third quarter of 2021, 10.7 per cent higher than Q3 2020.

The full data covering the final three months of 2021 will be published in February.

While supply remains an issue, the latest figures from HMRC reveal the closure of the extended Stamp Duty holiday on September 30 2021, attracted a spike in September house sales in the north, hitting 3,960.

According to HMRC's figures, that was the highest number of deals done in a single month in Northern Ireland since the height of the last property boom in July 2007.

The deadline saw a 43 per cent spike in sales from August to September, with sales falling back by 42 per cent in October to 2,290.

Commenting on the latest survey, RICS residential property spokesperson, Samuel Dickey said: “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.

“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.”

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