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Northern Ireland’s housing market appears to be weathering the pressures from rising interest rates, inflationary pressures and a jittery economic outlook, according to two market surveys released this week.

The latest report from industry body RICS (Royal Institute of Chartered Surveyors) reported the average price of a property in the province is edging higher despite a fall in new buyer demand, in sales and in the number of listings. It surveys estate agents who said the rate of price rises is at a much reduced rate to previous months and that there is a growing likelihood of a fall in prices in the next few months.

Meanwhile, University of Ulster’s Northern Ireland Quarterly House Price Index, carried out in collaboration with the Northern Ireland Housing Executive and Progressive Building Society, found prices were unchanged over the last quarter. It said the heightened affordability pressures for potential buyers has reduced market activity but, despite there being no price slide yet, there are some segments of the market which will “invariably, albeit gradually, see the market prices start to realign over the first half of 2023.”

It pegged the average price of a house in the province at £207,327 in the last quarter of 2022, up 5.2% on the same period in 2021, although there were wide regional variations. Within that, Causeway Coast and Glens witnessed the largest increase at 19% to £238,549, followed by Belfast which was up 10.2% on the year at £194,738. Meanwhile, Fermanagh and Omagh saw prices fall by 14.6% on the year to £177,299 while Mid Ulster prices eased 11% to £172,953.

Both reports said that a lack of new supply coming onto the Northern Ireland market is underpinning prices.

“The housing market, to a certain extent, continues to be protected from any severe price correction due to the ongoing imbalance between demand and supply and the chronic lack and quality of private rental stock,” Dr Michael McCord, Reader in real estate valuation at Ulster University.

Samuel Dickey, RICS Northern Ireland Residential Property Spokesman, agreed.

“As expected, the lack of stock coming onto the market continues to be an issue. Some potential buyers are giving careful consideration to purchasing, which is unsurprising given the current market landscape, including interest rate movements.