NORTHERN Ireland's housing market however remained buoyant last month, topping the UK for price growth, according to the Royal Institution of Chartered Surveyors and Ulster Bank report. The rise in prices slowed from the break-neck speed of the previous month.
66 per cent of Northern Ireland chartered surveyors responding to the survey reported growth in April of at least five per cent, compared to 75 per cent who reported growth of at least five per cent in March. 15 per cent recorded growth of eight per cent or above in April, compared to 30 per cent who reported growth of eight per cent or above in March.
Derek Wilson, head of Ulster Bank Mortgages said, "Confidence bred by political progress will certainly influence the market in the coming months in conjunction with the ongoing growth – albeit at a slowing rate – of the local private sector economy.
"However, as Northern Ireland house prices rise above many other UK regions, local housing is now less attractive as an investment and we are seeing places like Liverpool become increasingly appealing to buy-to-let investors. Combined with the likely prospect of another interest rate rise to come will, this will mean that the huge growth seen in the last two surveys may well give way to more modest price rises."
Tom McClelland, spokesman for Northern Ireland residential property, says that although growth is still thriving, there has been some softening of the market.
"Last month's rises were robust, indicating that confidence in the outlook for the market amongst buyers remains quite healthy, though with the prospect of May's interest rate rise looming, it was inevitable that growth in April would not match the huge surge in prices that the survey reported in March," he added.
"In the current interest rate environment and with the potential for one more hike to come it is likely that at least some investors will leave the market over the coming months, helping address supply issues and taking some more of the steam out of the residential property sector."
