Northern Ireland house prices rising at slowest rate in two years

House prices in Northern Ireland have risen over the past three months but at their slowest rate in two years, according to a survey.

Analyses from Ulster Bank and the Royal Institution of Chartered Surveyors (RICS) showed that a net balance of 26% of respondents told the survey that house prices rose, but that is down from 71% in the previous month.

Meanwhile, a net balance of -16% of respondents was recorded for price expectations over the next three months. This compared to the UK average of -44%.

A positive net balance indicates price increases while a negative net balance indicates that price decreases are expected.

Surveyors say there has been a fall in demand.

RICS Northern Ireland Residential Property Spokesman, Samuel Dickey said lack of supply will be an issue.

"Northern Ireland is still seeing some easing in enquiries and demand from extremely high levels earlier in the year, which is expected given the turbulence in the mortgage market paired with the time of year.

"Whilst the market is clearly in a different place than it was earlier in the year when demand was much higher, we would expect the lack of supply to continue to be a factor in the market for the foreseeable as we continue into the new year.

"Although factors including higher interest rates are clearly weighing on surveyors’ outlook, we continue to see relative steady levels of activity in the market and I don’t expect that to change dramatically as we move into 2023."

Chief Economist, Simon Rubinsohn added: "The overall tone of the latest RICS Residential Survey is understandably more downbeat than previously, reflecting the uncertain macro environment and the higher cost of mortgage finance. However, anecdotal comments from respondents capture the very real significant divergences in market behaviour at a more localised level."

Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To Know.