Good news for sellers as house prices in Northern Ireland are predicted to climb in the coming months, fuelled by increasing buyer interest and a shortage of available properties.

The latest Residential Market Survey from the Royal Institute of Chartered Surveyors (RICS) and Ulster Bank reveals that recent dips in inflation and whispers of future interest rate cuts have enticed buyers back into the market. This news comes as no surprise to estate agents who are reporting a surge in eager buyers despite the limited number of homes available.

The lack of new properties entering the market has been the saving grace for sellers over the past few years, propping up prices and ensuring a competitive market. Experts predict this trend will continue over the coming months, counteracting any minor fluctuations and leading to an overall increase in house values.

The RICS and Ulster Bank survey also highlights a recent surge in agreed sales, with agents anticipating this upward trajectory to continue throughout the rest of the year. However, experts believe this growth will vary across different areas of Northern Ireland.

Samuel Dickey, RICS Northern Ireland Residential Property spokesperson, explains: “The first six months of 2024 have been steady for the Northern Ireland housing market, with prices creeping up and a healthy level of demand across the board. We know that the market is experiencing variations, with certain areas experiencing higher demand and price increases than others, especially in desirable locations.”

He added: “Overall, it’s encouraging to see that those surveyed in Northern Ireland remain optimistic about activity levels in the coming months.”

Terry Robb, Head of Personal Banking at Ulster Bank, echoes this positive sentiment: “The latest survey suggests continued confidence in the Northern Ireland housing market, outperforming other areas of the UK, and surveyors are predicting a rise in sales figures in the coming months. We anticipate a similarly strong mortgage demand, driven by the buoyant housing market and our recent mortgage rate reductions.”

However, Robb acknowledges the elephant in the room: “The main challenge remains the lack of quality housing options for potential buyers.”

So, while rising prices are good news for sellers, it seems buyers will need to be prepared to act fast in Northern Ireland’s increasingly competitive property market.