13/07/10 - Some improvements but environment for housing market very challenging

Market activity in Northern Ireland increased during June, says the Ulster Bank-sponsored RICS (Royal Institution of Chartered Surveyors) housing market survey, but a significant number of local chartered surveyors are still reporting falling prices.

The survey’s indicators for transaction volumes, the number of enquiries and the number of instructions all went up, whilst the price balance remained in negative territory at -25.

Thirty four per cent of respondents reported that prices were falling, 58 per cent said that prices remained the same and 9 per cent reported that prices were up.

RICS Northern Ireland spokesman, Tom McClelland, says: “In terms of market activity, the survey suggests that there has been some increase of late. In terms of prices, the performance of the market remains uneven across sectors and geographical areas.”

“The economic and public spending environment will prove very challenging for the housing market. The Northern Ireland Executive will have to take significant action in the months ahead to cut spending, which will have numerous implications, not least with regard to employment,” Mr McClelland adds.

Derek Wilson, head of lending products at Ulster Bank, says: “The percentage of chartered surveyors reporting level prices, along with evidence of increases in activity, illustrates that we now have a more stable housing market. However it is clear that the road ahead will be a challenging one with difficult economic conditions and action to reduce government spending.”

The net balance for transactions during the past three months was 42, with 25 per cent saying that transactions levels remained unchanged, 17 per cent saying they were down and 58 per cent saying they were up.

The net balance for enquiries during the past three months was 75, with 8 per cent saying that transactions levels remained unchanged, 8 per cent saying they were down and 83 per cent saying they were up.