House prices in Northern Ireland are continuing to strengthen despite higher interest rates and inflationary pressures, two influential reports have indicated.
The monthly survey from RICS (the Royal Institute of Chartered Surveyors), which reports sentiment from agents, said the pressures are likely to be to blame for a fall in new buyer demand, sales, and listing but prices are still edging higher. It said the balance of surveyors reporting an increase in prices had actually increased moderately in February month-on-month, leaving Northern Ireland one of only two regions in the UK to experience an hike.
Meanwhile, the Halifax House Price Index showed annual house price growth stood at 5.7% in February, down slightly from the 7% reported in January but still representative of gains. It pegged the average price of a house at £185,009. That compares to around £163,000 in the north east of England, up 1.1% on the year, and £526,842 in London, down 0.9% on the year.
Across the UK as a whole, the average house price in February stood at £285,476, 2.1% up on this time last year.
“Recent reductions in mortgage rates, improving consumer confidence, and a continuing resilience in the labour market are arguably helping to stabilise prices following the falls seen in November and December,” Kim Kinnaird, Director, Halifax Mortgages, said. “Still, with the cost of a home down on a quarterly basis, the underlying activity continues to indicate a general downward trend.”
Behind the apparent strength for the Northern Ireland housing market is a continued lack of stock, with only limited numbers of houses being built or put up for sale. That has made agents in the province more positive about the year ahead, Samuel Dickey, RICS Northern Ireland Residential Property Spokesman, said.
“Unsurprisingly, the February survey outcomes point to overall relatively weak market conditions, albeit that there are of course variations between different parts of Northern Ireland with some areas seeing ongoing good demand,” he said. “Looking ahead, despite a range of economic challenges, Northern Ireland respondents overall remain more confident about prices and activity during the next year than their counterparts elsewhere in the UK.”
