Northern Ireland’s residential property market has shrugged aside recent economic worries to push higher and looks likely to continue on an upward trajectory in the coming months, according to online portal PropertyPal.
It reported an uptick in activity, particularly in March, as the economic jitters which took hold in the wake of last autumn’s mini budget subsided, with sales exceeding the pre-Covid average. PropertyPal, which listed properties on behalf of agents, said user enquiries had increased over the last three months with properties which are “accurately valued” attracting significant interest.
It recorded a 8.1% annual jump in the price of an average property to £197,800 in the first quarter of 2023, with houses up 8.5% on the year and apartments by 2.6%. Houses with a larger number of bedrooms continue to prove popular with average prices for five bedroom homes up 11.5% on the year at £427,800 while two-bedroom houses are up 6.1% on the year to £120,500. That situation is reversed for apartments where three-bed homes fell by 2.9% on the year to £211,800 and one-beds climbed by 7.1% to £103,200.
That trend looks set to continue, the quarterly report said, with a more confident and competitive lending environment increasing competition for business from banks and other lenders.
Jordan Buchanan, Chief Operating Officer at PropertyPal, said an expected further hike in UK interest rates has been well flagged and won’t catch lenders by surprise.
“…numerous lenders have already factored this in, and a more stable, confident lending environment has led to increased competition for business,” he said. “Additionally, the robust performance of the labour market has also contributed to the housing market’s resilience.
“A combination of these factors and a projected improvement in the economic mood, may see the housing market momentum continue in the coming period.”
Rents, meanwhile, are also continuing to head higher.
Annual growth in rents of property have climbed by 9.1% to £773 a month, with a lack of supply driving prices higher.
Mr Buchanan said there has been a sharp increase in the number of people chasing available properties.
“Before the COVID-19 pandemic, PropertyPal typically generated 15-20 enquiries per rental property advertised,” he said. “In stark contrast, the current rate stands at approximately 55-60 enquiries per property.
“While a cooling inflationary environment may lead to a deceleration in the rate of rental inflation, the persistent structural imbalance suggests that a significant slowdown is unlikely in the near future. Consequently, tenants may need to allocate a larger portion of their income towards paying their rent.”
