RICS and Ulster Bank Residential Market Survey June 2014
Northern Ireland’s housing market recovery was sustained during the first six months of 2014 and is set to continue into the second half of the year, according to the RICS (Royal Institution of Chartered Surveyors).
Commenting on the latest RICS and Ulster Bank Residential Market Survey, RICS spokesman, Samuel Dickey, says that whilst variations in the market remain, overall the recovery has been stronger than expected, reflecting wider economic conditions.
June was the 13th month in succession that the RICS and Ulster Bank survey indicated that prices rose, with a price balance of +83 for the month. Sales also increased, according to the survey, with a net balance of 69 per cent of respondents saying that transactions were up.
RICS Northern Ireland spokesman, Samuel Dickey says: “With the Northern Ireland economy experiencing a strong first half of 2014, overall the housing market saw positive progress too. The evidence is that transactions and sales increased in the six months to the end of June and that we are steadily making progress away from the bottom of the market towards a more normally functioning property market. Whilst still gradual and uneven, the recovery has been stronger than anticipated, reflecting the better than expected economic performance. That said, we are still something like 50 per cent below peak prices. The market will experience seasonal adjustments in the months ahead, and there will regional variations, but overall we expect the recovery to continue.”
Derek Wilson, Head of Lending Products at Ulster Bank, says: “According to the Council of Mortgage Lenders, the number of mortgages advanced in Northern Ireland increased by 35 per cent year-on-year in Q1 2014. Our own experience is that both demand and approvals continued to increase strongly in the second quarter as customers took advantage of some very competitive deals. Ulster Bank has lent over £1.75 billion in mortgages in Northern Ireland since the property price peak and is currently saying yes to nine out of 10 applications. We welcome further customer demand."
Commenting on the UK market, Simon Rubinsohn, RICS Chief Economist, said: “The Bank of England’s recent introduction of a ceiling on high loan to income lending and a 3 per cent interest rate stress test is unlikely on its own to have an immediate influence on the market. However, rhetoric from key officials at the Bank including Mark Carney alongside the consequences of the introduction of the MMR is already slowing momentum particularly in London.
Buyer enquiries in the capital are now slipping back which suggests that the very sharp upward move in prices will flatten over the coming months. Elsewhere around the country we believe the more hard fought recovery should remain intact.”
