Lower mortgage rates reinvigorates Northern Ireland housing market

A jump in demand from new buyers combined with lower mortgage rates has reinvigorated the Northern Ireland housing market.

That’s according to the latest report from the RICS and Ulster Bank which showed a jump in both prices and activity in November, as well as a more positive outlook amongst estate agents for 2024.

Its Residential Market Survey, which surveys members throughout Northern Ireland, reported that demand from new buyers last month was at its highest rate in over a year, while new instructions to sell rose for the third consecutive quarter. Meanwhile, respondents said prices rose at the strongest rate since October 2022 while the number of transactions climbed for the sixth consecutive month.

Looking ahead, the majority of surveyors said both prices and sales will climb in the next three months, and in the next year.

Lower mortgage rates, triggered by a more benign interest rate environment and expectations that central bank rates have peaked, are said to have been behind much of the increased activity, as well as the continued lack of supply of new housing stock that has underpinned prices for some months.

“The residential property market picture continues to brighten in Northern Ireland, with more potential buyers and sales going through than had been seen earlier in the year,” Samuel Dickey, RICS Northern Ireland Residential Property spokesman, said. “The limited supply is keeping prices stable, and anecdotally we’re seeing good quality housing being priced reasonably.

“It remains encouraging to see that surveyors in Northern Ireland are still more optimistic than UK counterparts despite economic and political uncertainty.”

The improved picture in the Northern Ireland housing market has been replicated across the rest of the UK, said RICS Chief Economist, Simon Rubinsohn, while warning there is still an air of caution.

“This is being aided by increased confidence that the interest rate cycle has peaked which is reflected in somewhat more competitive mortgage products coming to the market,” he said. “However, with the cost of money likely to remain elevated for some time to come and the economic outlook still downbeat, it is not surprising that the overall tone to the anecdotal remarks from survey respondents is still quite cautious.”