RICS HOUSING MARKET SURVEY NORTHERN IRELAND

13th Dec 2011

Economic uncertainty continues to hold Northern Ireland’s housing market back from any meaningful recovery, according to the latest RICS (Royal Institution of Chartered Surveyors) and Ulster Bank Housing Market Survey. 

Indeed, house prices continued to fall, the November survey suggests, with a net balance of -36% of respondents reporting that prices fell in the last three months (9% saying that prices were up, 46% saying that they were the same, and 45% saying that they were down). 

With regard to transactions, the net balance was 0 (33% saying the number of transactions reduced in the past three months, 33% saying that the number remained the same, and 33% saying that the number of transactions increased). 

The outlook remains uncertain, according to respondents. The net balance for transaction expectations was -34 (42% of respondents expecting transaction volumes to be down in the next three months, 50% expecting them to remain the same, and 8% expecting them to rise). 

In terms of the outlook for prices, the net balance was -17 (83% saying that they expect prices to remain unchanged in the next three months and 17% saying they expect prices to fall). 

RICS Northern Ireland spokesman, Tom McClelland, says: “The seemingly endless flow of bad news from the Eurozone will have inevitably impacted on the market. We are also now living in a different financial and job habitat. The price peaks of 2007 have disappeared and are unlikely to return for a generation. But there is strong evidence that where houses are priced correctly to reflect 2011 sentiment and the ability of buyers in the market to pay, sales are being  achieved." 

Derek Wilson, Head of Lending Products at Ulster Bank, says: “We remain strongly committed to making competitive deals available to support demand.  We saw a significant increase in demand when we recently removed arrangement fees from our entire mortgage range. The announcement of increased funding for Co-Ownership Housing will also support activity in the first time buyer market, and Ulster Bank is a key provider of mortgages in conjunction with the scheme."