Oct 08 2024 12:42:00

"Northern Ireland house sales have experienced a strong rebound, growing by 14% over the past year as confidence surged across the sector during the summer months. Visitors to PropertyPal and enquiries to estate agents have also increased by 15% and 6%, respectively, indicating continued pent-up demand for the remainder of 2024.

Lower mortgage rates are a key driver of these improved market conditions, with expectations of further rate reductions in the coming months. In fact, recent data from the Bank of England reveals that UK-wide mortgage approvals have reached their highest level in two years. House prices are also rising in response, with the average property price now 5.3% higher than a year ago. This upward trend is expected to persist, and potentially accelerate, if mortgage rates continue to decline.

While low housing supply has been a persistent challenge restraining the market in recent years, there are early signs of modest improvement, with new listings for sale up 5% compared to last year. The upcoming UK Budget later this month will be closely watched, with speculation around potential measures to address housing supply barriers but also tax-related issues."

Jordan Buchanan, Chief Executive Officer at PropertyPal commented on the rental market:

"Rents in Northern Ireland continue to rise, with double-digit annual growth of 10%, pushing the average rent to £890 per month and intensifying pressures on rental affordability. Demand remains exceptionally high, with an average of 73 enquiries sent to estate agents for each advertised rental property.

In contrast, supply remains at historically low levels. It is vital that both the national government, in the upcoming Budget, and the local Executive recognise the increasing pressures in the private rental market. To alleviate these persistent and growing challenges, efforts must focus on removing barriers to housing supply while providing incentives to boost investment in the private rented sector."

On the pricing front, PropertyPal’s index suggests an increase of 4.2% over the last year. This is very similar to the Nationwide index which suggests growth of 4.5%. This compares to a UK wide fall of approximately 2%. It is very difficult to estimate pricing activity in the coming 12 months given uncertainty around interest rates and a General Election with some likely giveaways. Based on the current economic data, It is unlikely to see any meaningful growth in prices, but perhaps a more meaningful uplift in overall levels of activity."