A shortage of supply of houses coming onto the market remains a challenge in Northern Ireland, according to a new survey.

The supply of new houses coming onto the market is falling, according to a survey carried out by the Royal Institute of Charted Surveyors (RICS) in association with Ulster Bank.

In January, the RICS predicted that house prices would rise by around 3% this year.

RICS residential property spokesperson, Samuel Dickey, said: "The Northern Ireland housing market appears to have begun 2017 much as it ended 2016, with prices edging upwards and reasonable demand evident.

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"However, supply remains a challenge, with no sign of the number of properties coming onto the market picking up. Surveyors expect transaction activity to hold up in the short-term, but unless supply improves this won't be sustained.

"It remains to be seen if sellers are holding off until the spring months before marketing their properties."

Sean Murphy, Managing Director, Branch Banking at Ulster Bank, said: "The Northern Ireland housing market has entered 2017 with the anticipation of growth in both prices and transactions, and our own expectation at Ulster Bank is for strong mortgage demand, with the ongoing very low interest rate environment and peoples' desire to own their own home."

(CD/JP)