Marketing No Comments

Covid sharpens inequalities in UK housing market

The Covid crisis has widened inequalities in the UK housing market, according to new research published today.

Figures from building society Nationwide show one in four private renters think the pandemic has made it more difficult for them to buy a home.

Sharp rises in house prices over the last year, driven by demand being stoked by the stamp duty holiday and prospective homebuyers rushing to snap up larger properties with gardens, has reduced housing affordability for first-time-buyers.

To find out more about how we can assist you with your Mortgage requirements, please click here to get in touch

Research from property search site Rightmove shows house prices jumped 5.7 per cent annually in July to reach a record high.

Homeownership rates have dropped markedly over the last 15 years, the research shows. 57 per cent of households in the UK now own their home, compared to 64 per cent in 2003.

63 per cent of the country also thinks the UK has a housing crisis, underlining the need to increase home supply to ease inflationary pressures in the market.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

Sara Bennison, chief product and marketing officer at Nationwide Building Society, said: “Our research and cross-industry conversations show that the pandemic has served to exacerbate long-standing issues in the housing market.

“Layer onto that the enormous challenge of making the UK’s homes net zero and the challenge ahead becomes even greater.”

By Jack Barnett

Source: City AM

Discover our Mortgage Broker services.

Marketing No Comments

House prices up 10% annually, according to ONS

Average house prices increased by 10.0% over the year to May, up from 9.6% in April, according to the latest figures from the ONS.

On a monthly basis prices were up 0.9% in the month to May to an average £255,000, nearly returning to the record average house price seen in March of £256,000.

Average house prices increased over the year in England to £271,000 (9.7%), in Wales to £184,000 (13.3%), in Scotland to £171,000 (12.1%) and in Northern Ireland to £149,000 (6.0%).

To find out more about how we can assist you with your Mortgage requirements, please click here to get in touch

London continues to be the region with the lowest annual growth (5.2%) for the sixth consecutive month.

Tomer Aboody, director of property lender MT Finance, said: “Despite a dip in price growth in April, the housing market got back on track in May, continuing on its upwards trajectory.

“Buyer confidence certainly remains high, not only in terms of the desire to move but also in respect of getting the necessary finance approved, and this is helping push up prices.

“With so many mortgage products out there, buyers have the opportunity to get onto the property ladder, or move up it, at record low rates. If you have to stretch yourself to get a bigger mortgage to purchase the property you have set your heart on, low mortgage rates make this a much more palatable proposition.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

“Stamp duty holiday or not, prime properties with good outdoor space, including room to work from home and not too far from the station or the office to make commuting possible where necessary, will always be in demand with multiple buyers willing, and able, to pay.”

Mark Harris, chief executive of mortgage broker SPF Private Clients, added: “Continued strong demand for property, combined with a lack of stock, is pushing up prices further still. Low mortgage rates, combined with bigger deposits built up during lockdown, are giving buyers plenty of purchase power.

“Despite the tapering of the stamp duty holiday, there isn’t much sign of a significant slowdown in the market. Lenders remain keen to lend and interest rates look unlikely to rise anytime soon, resulting in some cheap mortgage deals, particularly for those with large deposits.”

Source: Mortgage Introducer

Discover our Mortgage Broker services.

Marketing No Comments

London Lettings Heat Up As Workers Return to the Office

London’s rental market gathered momentum in June as tenants prepared for a return to the office with 24 per cent more tenancies agreed compared to May, according to Chestertons’ latest market analysis. Tenants were also keen to take advantage of rents which had fallen to 18-month lows but which are now starting to rise as the supply of available properties reduces. Some of the areas that have seen the biggest rental increase over the past three months are Greenwich (4.9 per cent), Kew (4.7 per cent), Knightsbridge (4.7 per cent) and Battersea Rise (3.9 per cent).

To find out more about how we can assist you with your Mortgage requirements, please click here to get in touch

Richard Davies, head of lettings at Chestertons, said: “As UK businesses are preparing for the reopening of offices, London’s lettings market is already witnessing the return of the city worker, rushing to rent a home in close proximity to work. Chestertons agreed the highest ever aggregate number of tenancies for any first half year period. Adding to the demand is the imminent return of international students and corporate tenants which, since some easing of travel restrictions, has already been evident.”

Discover our Residential Mortgage Broker services.

Comparing the demand from UK and international tenants in June against May, Chestertons’ lettings division registered a 29 per cent increase in applicant numbers, a 17 per cent increase in tenants moving into their new flat and a 16 per cent increase in offers on properties. At the same time, the number of properties available to rent in June fell by 4 per cent compared to May and by one-third compared to June last year. Areas that have seen the largest decrease in available properties to rent in June 2021 compared to June 2020 include Battersea & Clapham (-68.2 per cent), Hyde Park (-65.5 per cent), Richmond (-65.2 per cent) and Notting Hill (-63.6 per cent).

BY PETE CARVILL

Source: Property Wire

Discover our Mortgage Broker services.

Marketing No Comments

Is Ending the Stamp Duty Holiday Good for Property Market?

Introducing a stamp duty holiday at the height of the pandemic was commendable but it has over-stayed its welcome, says Tom Bill, Head of UK Residential research at Knight Frank.

With the benefit of hindsight, the stamp duty holiday was unnecessary. The Chancellor was right to introduce it last July but the notion it is needed to support the country’s economic recovery has not rung true for many months – which is a welcome development.

Would activity in the housing market have been as strong over the last year without the holiday? It is doubtful but we would still be talking about a remarkable year compared to initial expectations.

The general election of December 2019 was the catalyst for the release of frustrated demand that had built during five years of Brexit-induced political uncertainty. While Covid initially put this recovery on hold, it was subsequently amplified as people reassessed their homes during successive lockdowns. Then along came the stamp duty holiday.

To find out more about how we can assist you with your Mortgage requirements, please click here to get in touch

Its merits as a way of stimulating wider economic activity are clear but the decision to extend the holiday by six months beyond the original March 2021 deadline is more open to debate.

However, if we remember back to the Budget, which took place on 3 March, it was a time of some uncertainty. Schools had not yet re-opened, less than a third of the UK population had received their first vaccination and a stamp duty holiday had been a welcome boost for those that most needed it.

The introduction of a taper was arguably more significant than the extension. It showed the government had listened to concerns about pressures on the conveyancing system and meant it avoided newspaper headlines about buyers missing the deadline through no fault of their own.

However, in hindsight, a three-month extension and a three-month taper was possibly excessive.

UK house price growth was still only in single digits at this stage but it had been above 5% for seven months and the holiday was already distorting sales patterns.

March was a record month for transactions in the UK and over the year more money was spent in the housing market than since before the global financial crisis. Predictably, sales volumes dropped sharply in April in a similar way to 2016 after the implementation of a 3% stamp duty surcharge for second home-owners.

It has made the true state of the market difficult to assess. It is the equivalent of looking in the mirror at the funfair – you can make out the overall shape but little of the meaningful detail.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

However, the stamp duty holiday hasn’t just squeezed transactions into artificially short periods of time, it has also put people off entering the market.

A tax deadline there is no guarantee of meeting, together with stories of sealed bids, over-worked conveyancing solicitors and a shortage of removals vans will have deterred some – exacerbating already-low levels of supply and putting upwards pressure on prices.

Supply did not pick up after Christmas this year in the way it normally does, due to uncertainty over new variants and the fact many families were home-schooling. Ambiguity over missing the original March stamp duty holiday deadline was just another reason not to list your property.

Market appraisals are a leading indicator of new supply and normally build during the first quarter of the year. In the ten years between 2009 and 2019, the number of appraisals only fell once between February and March. That was in 2016, ahead of the introduction of a 3% stamp duty surcharge in April.

This hesitation on the part of sellers highlights how people crave stability. That is true irrespective of any wider debate about the flaws of a transaction-based tax.

In a similar way to rising interest rates, there will be a financial hit from ending the holiday but the wider point is that it signals a return to normality.

Indeed, the second half of this year should see healthy levels of activity in the UK housing market. There is frustrated demand in the system, new supply is starting to pick up and the labour market is stronger than most economists predicted six months ago.

Almost a year after its introduction, there is no sense the Chancellor was wrong to introduce the stamp duty holiday but there is a strong feeling that it has, thankfully, over-stayed its welcome.

BY PETE CARVILL

Source: Property Wire

Discover our Mortgage Broker services.

Marketing No Comments

What the End of the Stamp Duty Holiday Means for the Property Market

June 30th marks the end of the Stamp Duty Holiday at the current £500,000 threshold, with it set to stagger back to the normal rates before the final deadline at the end of September. But what will the end of the Stamp Duty Holiday mean for the property market, and when is the best time to buy a property in 2021?

Below Ross Counsell, chartered surveyor and director at property buyers, GoodMove, shares his thoughts on the Stamp Day Holiday, how it’s contributed to higher property prices and predictions for the year ahead.

To find out more about how we can assist you with your Mortgage requirements, please click here to get in touch

When does the Stamp Duty Holiday end?

After much anticipation, the Stamp Duty Holiday in its current format will come to an end on 30th June. Following this, there will be a staggered reduction from the original threshold of £500,00 to £250,00 until the 30th of September. On the 1st October, it will return to the previous level of £125,0001.

The Stamp Duty Holiday has been a catalyst to the massive boom in the property market and increase of house prices, with more people rushing to buy a property while the holiday restrictions are in place.

Has the Stamp Duty Holiday contributed to higher property prices this past year?

With such high demand for property fuelled by the Stamp Duty Holiday deadline, comes higher average property prices. According to ONS’s latest statistics, UK average house prices have increased by 8.9 per cent over the year to May 2021 and now stand at a mammoth £265,000 2 – the highest seen in the UK in many years.

The Stamp Duty Holiday, as well as demand for more spacious properties fuelled by lockdown, has helped the property market succeed through what has been an immensely difficult year in other industries.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

How many people have used the Stamp Duty deadline?

Coupled with the recent First Homes scheme, the Stamp Duty Holiday has given many first-time buyers the possibility of getting a foot on the property ladder. We carried out a poll which found that on average, nearly two in five (39 per cent) Brits have taken advantage of the Stamp Duty Holiday when buying their home in the past year. 3 For that lucky percentage, they are expected to have made significant savings of up to £15,000.

What does the Stamp Duty Holiday extension mean for the property market in 2021?

As we have seen from HPI statistics across the year, the housing market has become extremely saturated, following people rushing to buy properties to meet the deadline. Mortgage approvals and new buyer enquiries for properties have risen by 44 per cent⁴ with the rise in demand reflecting the inflation of house prices.

In a sense, the government’s exclusion of contract exchange with Stamp Duty may be of benefit in the long run. We can expect to see a decline in demand from October once the deadline officially ends, and expect this to be a better time to buy a property this year before rushing to try and meet the deadline.

Should buyers wait to purchase property until the end of the new deadline?

For anyone looking to purchase a property, the advice is simple – hang fire. If the statistics are reflective of anything over the past year, the Stamp Duty is of benefit to only one side of the coin – the sellers. If buyers can wait it out until the end of the deadline, they should expect to save a significant amount of money on a property.

A home is the heart of you and your family, and with only three months to go until the end of the Stamp Duty deadline, it’s worth buyers taking their time to find their dream property. Such a significant stage of life should not be rushed, as this can cause dissatisfaction in the long term.

So, in the meantime, Counsell suggests doing your research, and really getting to grips with the property market. Before looking to buy, research the area and any streets you’d be interested in living on, so you don’t need to spend time later. Look at listings every day and know exactly what it is you are looking for in a property so when the Stamp Duty ends, you can jump on it straight away. Further, make sure you have a mortgage-in-principle ready to go which will speed up the process once you decide to put in an offer.

Buying a home amidst the competitiveness of the property market can be disheartening for buyers, but it’s important to stay positive and be patient!

BY PETE CARVILL

Source: Property Wire

Discover our Mortgage Broker services.

Marketing No Comments

The north’s housing market shows signs of cooling in May

THE north’s housing market showed some signs of cooling in May with sales returning to 2019 levels.

HMRC estimates there were 2,530 residential property transactions during the month, on par with April 2021.

Although 368 per cent higher than May 2020, the figure is just three per cent above the 2,450 sales from 2019.

That compares with with the first four months of 2021, where sales were 34.6 per cent above the same period in 2019.

To find out more about how we can assist you with your Mortgage requirements, please click here to get in touch

Even so, it continues the 2021 trend in Northern Ireland, with each month posting the strongest sales figures since 2007.

Overall, home sales for the first five months of 2021 are 28 per cent up on 2019, again the strongest performing start to the year for the industry since the property crash.

The surge in sales in 2021 is a combination of pent-up demand and savings built up during lockdown, coupled with incentives around stamp duty and government backed guarantees to encourage lending to first time buyers.

HMRC’s latest data released on Tuesday showed a broader cooling in the housing market across the UK with home sales slipping by four per cent between April and May.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

Industry analysts said the monthly drop in sales was reflective of a pause in the market in response to the anticipated cut-off in the stamp duty concession.

The stamp duty holiday was due to end in March 2021 but was extended and will now be tapered into the autumn, before returning to normal levels.

Meanwhile HMRC’s data showed a greater weakening in Northern Ireland’s commercial property market during May.

The 260 non-residential property sales recorded for the month was 160 per cent up on 2020, but was below May figures posted for 2015-2019.

By Ryan McAleer

Source: Irish News

Discover our Mortgage Broker services.

Marketing No Comments

Buyer Demand Remains Higher for Houses Due to Covid

Covid-19 continues to fuel buyer demand for larger homes and more outdoor space across every county in England according to recent research by PropCast, with three-bed houses the most desirable and one-bed flats the least.

The findings from the house selling weather forecast analysed buyer demand across England to see what percentage of houses and flats for sale were being snapped up, and how that differed between the number of bedrooms.

PropCast has found 73 per cent of houses for sale are under offer or subject to contract – substantially higher than the figure for flats (43 per cent). Houses are the most sought after with the top five counties being: Bristol (83 per cent); Dorset (81 per cent); Hampshire and West Sussex (80 per cent); Northamptonshire and Bedfordshire (79 per cent); and East Sussex, Essex, Suffolk, Devon, Cornwall and Somerset (78 per cent). London has the least amount of houses under offer or subject across England (56 per cent), but this is still larger than the sale of flats (35 per cent).

To find out more about how we can assist you with your Mortgage requirements, please click here to get in touch

On average, three-bed houses are in most demand with 76 per cent for sale under offer or subject to contract, followed by two-beds (75 per cent), four plus-beds (69 per cent) and one-beds (62 per cent).

Meanwhile, one-bedroom flats are the least desirable at 44 per cent – most likely due to not having a garden and with limited space indoors – along with three-bedroom flats. In terms of flats overall, two-beds are the most popular (50 per cent), followed by four-plus beds (39 per cent).

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

Gavin Brazg, founder of PropCast said: “Over the last year, we can see buyer demand has grown to record high levels across England, and we don’t expect this to peter out anytime soon. However, it’s clear to see that if you’re trying to sell a flat at the moment with minimal to no outdoor space, it is going to be harder to find a buyer quickly. My advice would be to look at the situation as if you are in a buyers’ market, which is a time where you have to change your selling strategy in order to achieve the best possible price and fast. The best way to strengthen your position is to price conservatively from the start and choose a local, trusted estate agent who truly knows the market and how best to position your home within it.”

BY PETE CARVILL

Source: Property Wire

Discover our Mortgage Broker services.

Marketing No Comments

The Most and Least Affordable Locations for First-Time Buyers

As the government launches First Homes – its latest scheme designed to help first-time buyers in England onto the property ladder – new research has revealed the most and least affordable locations following a turbulent 12 months for the UK property market.

Compiled by online mortgage broker Mojo Mortgages, the First Homes scheme affordability index looked at various factors affecting home affordability in June 2021 including house prices, mortgage repayments, average annual salary and monthly take home pay to work out where in England was most and least affordable.

The figures have been released following the launch of the government’s First Homes scheme this month; designed to help first-time buyers and key workers onto the property ladder in their local areas that might otherwise have had to move to another city to afford their first home.

To find out more about how we can assist you with your Mortgage requirements, please click here to get in touch

First Home properties will be priced at a discount of at least 30 per cent of the original market value to allow more affordable deposits and mortgages with prices being capped at a maximum of £250,000 (£420,000 in Greater London). However, it’s important to note that this discount will apply to the lifetime of the property, meaning that same percentage discount will apply when the home is resold in the future.

Based on the average monthly mortgage payment as a percentage of income*, Oxford was the least affordable location in England for first-time buyers with the average monthly mortgage repayment taking up 49.37 per cent of a couple’s take home pay. This is based on an average property price in the city of £540,005 and an average annual salary of £31,232.

Bath (47.65 per cent) and London (47.12 per cent) followed close behind highlighting the difficulty of getting onto the property ladder in these areas. However, it’s clear there was some variance across the capital’s 32 London boroughs.

The ten least affordable areas in England based on mortgage as a percentage of income were as follows:

  • Oxford (49.37 per cent)
  • Bath (47.65 per cent)
  • London (47.12 per cent)
  • Reading (38.98 per cent)
  • Poole (38.72 per cent)
  • Cambridge (38.49 per cent)
  • Brighton (37.19 per cent)
  • Slough (36.68 per cent)
  • Cheltenham (36.38 per cent)
  • Exeter (35.03 per cent)

In contrast, it was Bradford that was most affordable for first-time buyers.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

With an average property price of £145,981 and an average annual salary of £28,790, this equated to 14.30 per cent in terms of monthly mortgage payments as a percentage of income – the lowest in England.

Blackpool (15.94 per cent) and Stoke-on-Trent (17.35 per cent) followed closest behind with the top ten most affordable areas for first-time buyers as follows:

  • Bradford (14.30 per cent)
  • Blackpool (15.94 per cent)
  • Stoke-on-Trent (17.35 per cent)
  • Sunderland (17.56 per cent)
  • Middlesbrough (17.70 per cent)
  • Hull (17.72 per cent)
  • Carlisle (17.82 per cent)
  • Durham (18.10 per cent)
  • Liverpool (18.56 per cent)
  • Bolton (19.19 per cent)

Regardless of location, the First Homes scheme could make a significant difference to a first-time buyer’s monthly outgoings once on the property ladder in terms of mortgage payments as well saving for that all important deposit.

For example, for those in London that purchase a property under the scheme, they can expect to pay on average around £766 less a month on their mortgage repayments, taking their percentage spend of income from 42.17 per cent to 32.97 per cent –  a significant saving.

BY PETE CARVILL

Source: Property Wire

Discover our Mortgage Broker services.

Marketing No Comments

Demand for Chain-Free Transactions Climbs as Buyers Attempt to Dodge The Market Backlog

Research from the homebuying platform, YesHomebuyers, has found that demand for chain-free properties has climbed across the UK’s major cities as many homebuyers look to minimise current market delays for a fast property purchase.

A chain-free sale is thought to reduce conveyancing times from around 12 to 4 weeks, which has become particularly sought after in the current market due to many property transactions delaying months on end at the final legal stages.

Currently across the UK, 56 per cent of all chain-free homes for sale have already been snapped up by buyers hoping to skip the current market bottleneck, and the research by Yes Homebuyers shows that in some cities, this has increased considerably in just two months.

To find out more about how we can assist you with your Mortgage requirements, please click here to get in touch

When comparing buyer demand for chain-free transactions between March and June alone, demand across the UK has climbed by 6 per cent. However, in Cambridge, chain-free property demand has increased by 10 per cent since March alone.

Swansea has also seen a notable increase in the number of buyers snapping up chain-free homes, with demand climbing 9 per cent.

In Southampton and Liverpool, chain-free demand is up 8 per cent since March, with Bournemouth (7 per cent), Sunderland (7 per cent), Edinburgh (6 per cent), Leeds (6 per cent), Bristol (6 per cent) and Newcastle (6 per cent) also seeing some of the most significant uplifts.

So, where presents the best opportunity of snagging a chain-free transaction? Chain-free stock levels have dropped across 17 of the 26 major UK cities analysed by Yes Homebuyers, and Glasgow is home to the lowest level, with just 6 per cent of all homes listed for sale marked as chain-free.

However, half of all for sale stock currently on the market in Belfast is chain-free, while in Manchester and Cambridge, chain-free stock levels sit at 47 per cent. Sheffield is also home to a large degree of chain-free stock at 45 per cent, as is Liverpool (44 per cent).

Matthew Cooper, founder and managing director of Yes Homebuyers, commented: “Many homebuyers have now accepted the fact that a stamp duty holiday saving is no longer on the cards, but that they will have to contend with the long market delays that have materialised as a result of the initiative. In this respect, a chain-free purchase will, at least, provide some hope of reducing the transaction timeline, and so it comes as no surprise that their popularity has increased substantially in many major UK cities. Of course, the downside to this high demand is that chain-free stock levels have dropped across the majority of cities in recent months, although some do present a far better chance of finding one than others.”

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

Table shows current demand for chain-free properties in each city and the change between March and June 2021

LocationDemand – chain free (June 2021)Difference
Cambridge60 per cent10 per cent
Swansea59 per cent9 per cent
Southampton59 per cent8 per cent
Liverpool52 per cent8 per cent
Bournemouth65 per cent7 per cent
Sunderland56 per cent7 per cent
Edinburgh21 per cent6 per cent
Leeds65 per cent6 per cent
Bristol71 per cent6 per cent
Newcastle49 per cent6 per cent
Newport67 per cent5 per cent
Plymouth71 per cent5 per cent
Portsmouth67 per cent5 per cent
Nottingham63 per cent4 per cent
Manchester36 per cent4 per cent
Bradford53 per cent4 per cent
Cardiff51 per cent4 per cent
Aberdeen4 per cent3 per cent
Glasgow18 per cent3 per cent
London40 per cent3 per cent
Birmingham46 per cent3 per cent
Sheffield66 per cent3 per cent
Oxford42 per cent2 per cent
Belfast59 per cent2 per cent
Leicester49 per cent2 per cent
Data sourced from Rightmove and Zoopla

Table shows current level of chain-free property stock in each city and the change between March and June 2021

LocationStock – chain free (June 2021)Difference
Belfast50 per cent3.6 per cent
Manchester47 per cent-0.6 per cent
Cambridge47 per cent-0.3 per cent
Sheffield45 per cent0.2 per cent
Liverpool44 per cent-0.5 per cent
Southampton43 per cent-1.2 per cent
Bristol42 per cent0.6 per cent
Oxford42 per cent-0.9 per cent
Portsmouth41 per cent-1.1 per cent
Plymouth41 per cent0.8 per cent
Birmingham41 per cent2.1 per cent
Cardiff41 per cent-1.3 per cent
Nottingham40 per cent-1.0 per cent
Leicester39 per cent1.4 per cent
Sunderland39 per cent-4.8 per cent
Bournemouth39 per cent1.9 per cent
United Kingdom36 per cent-0.1 per cent
Newcastle36 per cent-2.1 per cent
London35 per cent0.6 per cent
Leeds34 per cent-1.2 per cent
Swansea31 per cent-0.8 per cent
Bradford31 per cent0.0 per cent
Newport23 per cent-4.9 per cent
Aberdeen13 per cent-3.6 per cent
Edinburgh9 per cent-0.9 per cent
Glasgow6 per cent-1.5 per cent
Data sourced from Rightmove and Zoopla

BY PETE CARVILL

Source: Property Wire

Discover our Mortgage Broker services.

Marketing No Comments

Gap between housing demand and supply is widest in years

THE gap between the number of house hunters coming to market and the choice of properties for sale is at its widest since 2013, according to surveyors.

And the mis-match between buyers and sellers is putting an upward pressure on house prices, with every single Northern Ireland respondent to the latest Rics/Ulster Bank residential market survey saying prices rose in the last month.

A net balance of 75 per cent of property professionals noted an increase in new buyer inquiries during May, according to the survey (more than double the overall UK rate).

But the supply of homes fell further, with a net balance of 21 per cent of surveyors reporting a fall in the number of new property listings.

To find out more about how we can assist you with your Mortgage requirements, please click here to get in touch

In terms of the outlook, Northern Ireland surveyors remain confident for sales activity, with a 74 per cent of respondents expecting the number of homes sold to increase over the next three months.

And nearly two thirds (63 per cent) expects rising prices between June and August, though this is down from 77 per cent last month.

Rics’ regional residential property spokesman Samuel Dickey says: “We’re seeing more properties coming on to the market, but again this isn’t at a sufficient rate to meet buyer demand, and that mismatch is leading to the increase in house prices we are currently seeing.

“Some of the factors at play continue to be people wanting more space and also professionals living elsewhere seeking to move back to Northern Ireland, which is leading to very strong demand for detached properties in sought after areas.”

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

Growth in property sales may soften a little in the coming three months once the stamp duty holiday is tapered from July to September.

Simon Rubinsohn, Rics chief economist, said: “Ending a tax break always has the potential to be a little disruptive for a market but with the economy performing better than could have been expected even a short while ago and the cost of money still at rock bottom levels, the principal drivers supporting demand will remain in place even after the expiry of the stamp duty holiday.”

Terry Robb, head of personal banking at Ulster Bank, said: “House prices in Northern Ireland rose at their fastest annual rate since 2016 during the first quarter of this year, and this latest survey suggests that price inflation has continued into the second quarter.”

By Gary McDonald

Source: Irish News

Discover our Mortgage Broker services.