7 days ago
- Business
- Belfast Telegraph
Optimism for NI housing market as sales and prices rise, survey finds
The latest monthly research by the Royal Institution of Chartered Surveyors (RICS) found optimism about prospects for the housing market among its members in Northern Ireland.
The report of rising sales in July reversed two consecutive months of falling sales reported in May and June.
A net balance of 5% of NI surveyors reported that sales rose throughout the month of July – a significant improvement from the previous two surveys.
But at a net balance of 60%, much stronger numbers were optimistic on the outlook for sales, and expected sales to rise in the next three months.
Surveyors also reported an increase in demand during July, with a net balance of 40% reporting an increase in new buyer enquiries. That was the second-highest balance seen across the UK after the north-west of England.
Supply had also improved in July, with a net balance of 40% reporting new instructions to sell during the month, similar to levels seen in Scotland, the north-west and East Midlands.
And respondents in Northern Ireland were reporting a rise in prices in strong numbers, with a net balance of 95% reporting increasing prices in the last few months.
That trend is expected to continue, with surveyors anticipating that prices will go up in the next three months.
Increased housing market activity is expected as a result of the Bank of England's decision last week to cut interest rates from 4.25% to 4%.
Samuel Dickey, RICS Northern Ireland residential property spokesman, said: 'The first half of 2025 was relatively steady for NI's residential property market and it's encouraging to see this continuing as we progress into the second half of the year.
"Whilst the most recent survey sees surveyors reporting a rise in supply coming to the market, we still do not have sufficient stock to meet the needs of the market.
"It is hoped that the recent easing of interest rates will support new buyers in the coming months.'
UK-wide, RICS reported that new home buyer enquiries had fallen back in July.
A net balance of 6% of property professionals reported new buyer enquiries falling rather than rising in July, indicating a softening in demand compared with the previous month.
Simon Rubinsohn, RICS chief economist, said the UK market may be feeling the impact of fears about the autumn Budget: 'The somewhat flatter tone to the feedback to the July RICS residential survey highlights ongoing challenges facing the housing market.
"Although interest rates were lowered at the latest Bank of England meeting, the split vote has raised doubts about both the timing and extent of further reductions.
"Meanwhile, uncertainty about the potential contents of the Chancellor's autumn Budget is also raising some concerns.
"Against this backdrop, respondents continue to report that the market remains particularly price sensitive at the present time.'
Francis Grimley a mortgage and protection adviser with the Mortgage Shop in Belfast, told Belfast Telegraph last week: 'First-time buyer activity has been frenzied throughout 2025, and this latest rate drop is likely to intensify demand further,' he said.
