A tight supply and demand balance has meant the Northern Ireland housing market has once again proved the most resilient of all 海角视频 regions, according a new report from Halifax.
Average residential property prices in the province in September were down by just 0.2%, or 拢400, from a year ago and now stands at 拢184,108. That compares to a fall of 5.7% in England, 3.6% in Wales and 0.8% in Scotland.
All regions have come under pressure in recent months as a result of the cost-of-living crisis and the recent increases in interest rates. However, a lack of new housing stock coming to the market in Northern Ireland, either newly built properties or resale by those moving house, has underpinned the local market and made the recent dip less pronounced.
Perhaps partly behind the relatively modest correction to the steady house price rise since the end of the Covid-19 pandemic is the fact Northern Ireland鈥檚 property prices remain the lowest of all 海角视频 regions.
In Scotland, average house prices are over 拢15,000 above Northern Ireland鈥檚 at 拢201,594, in Wales they are 拢30,000 higher at 拢214,585 and in England prices are more than double at 拢376,450. On a sub-sector basis, London is the most expensive place in the 海角视频 to purchase a home at 拢525,678.
Across the 海角视频 as a whole, prices fell by 0.4% in September and now stand at 拢278,601.
Kim Kinnaird, Director, Halifax Mortgages, said the higher cost of borrowing has also tempered activity.
鈥淎ctivity levels continue to look subdued compared to recent years, with industry data showing lower levels of new instructions to sell homes and agreed sales,鈥 she said. 鈥淏orrowing costs are the primary factor, given the impact of higher interest rates on mortgage affordability. Against this backdrop, homeowners inevitably become more realistic about their target selling price, reflecting what has increasingly become a buyer鈥檚 market.鈥
She added that borrowing costs aren鈥檛 likely to come down any time soon.
鈥淢any economists and financial markets predict that Base Rate will remain higher for longer, with any significant cuts appearing unlikely until inflation gets closer to the Bank of England鈥檚 2% target,鈥 she said. 鈥淥verall, these factors are likely to keep mortgage rates elevated in comparison to recent years, constraining buyer demand and putting downward pressure on house prices into next year.鈥
