In the most recent survey, 16 per cent more respondents from Northern Ireland observed a rise in house prices. This is the least positive this figure has been since December 2022 and the second-lowest since July 2020. This figure also represents a significant decline from the +80 per cent net balance recorded in July 2022.
NI surveyors are remaining relatively optimistic about pricing for the three months ahead, with a net balance of 17 per cent expecting a rise, up from four per cent in the survey previous. Indeed, surveyors in Northern Ireland are more optimistic about the outlook than the UK average, where -59 per cent of respondents expect a fall in prices over the next quarter.
Looking at new buyer inquiries, a net balance of -34 per cent of respondents from Northern Ireland noted a decrease, marking the second consecutive month of decline. Higher interest rates appear to be a contributing factor dissuading potential buyers. Furthermore, the latest report indicates a decline in supply, with a net balance of -38 per cent of surveyors reporting a decrease in the number of properties entering the market.
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Due to a limited demand and supply, sales have been impacted, with a net balance of -25 per cent of NI surveyors reporting a fall through the month of July. Surveyors seem more positive on the sales outlook though, with a net balance of 22 per cent expecting a rise in sales over the next quarter.
Samuel Dickey, RICS Northern Ireland Residential Property Spokesman, said: "The latest survey results show the extent of the change in market sentiment over the past year with higher mortgage rates having a clear impact. However, it is noteworthy that the Northern Ireland market appears to be in a stronger position than other parts of the UK. Northern Ireland is the only part of the UK currently with a positive net balance for prices, and unlike in other areas, Northern Ireland surveyors are relatively upbeat about the prospects for prices and activity in the months ahead."
Terry Robb, Head of Personal Banking at Ulster Bank, added: "We know that many people in Northern Ireland continue to want to own or move home, and we are working to support customers with their homebuying aspirations. That’s why Ulster Bank offers NatWest’s extensive mortgage product offering for customers in Northern Ireland. This includes products such as 95% mortgages in support of first time buyers, and Green Mortgages for those wanting to maximise the benefits of having an Energy Performance Certificate A or B rating. These products help our customers in Northern Ireland through a wider range of competitive mortgage deals."
