The latest RICS and Ulster Bank Residential Market Survey has revealed that new buyer demand for housing in Northern Ireland has rose at the fastest rate since the start of 2022.

A net balance of 35 per cent of NI respondents reported that new buyer enquiries rose through the month of January, the fifth consecutive month that this balance has been in positive territory. This is the highest that this figure has been since January 2022.

Examining sales levels for January, a net balance of 12 per cent of NI surveyors observed an increase in sales during the month, which shows little change compared to December's figure.

However, with increased new buyer demand, respondents are more optimistic about the sales outlook than they were.

A net balance of 34 per cent of surveyors in NI anticipates that sales will rise over the next three months. This is compared to the 23 per cent that was seen in December 2023. NI respondents are more optimistic than UK counterparts with a net balance of 14 per cent of UK respondents expecting an increase in sales.

Regarding supply, 24 per cent of surveyors in Northern Ireland reported a net increase in new instructions to sell during January. This marks the fifth consecutive month that this figure has stayed in positive territory.

Over the past three months, a net balance of 59 per cent reported that prices rose which is up from 53 per cent that was seen in December 2023. On the pricing outlook, a net balance of 32 per cent of respondents anticipate that prices will continue rising over the next three months.

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Looking ahead to the coming year, Northern Ireland surveyors maintain strongly positive expectations. A net balance of 67 per cent of NI respondents anticipates higher prices in a year's time, surpassing figures for both London and Scotland, which stand at 46 per cent. Additionally, a net balance of 40 per cent of Northern Ireland respondents expects increased sales activity in the same timeframe.

Samuel Dickey, RICS Northern Ireland Residential Property Spokesman, says: "It’s encouraging to see that surveyors in NI are remaining optimistic. The easing in mortgage rates has no doubt alleviated some of the pressures seen in the housing market, and this is perhaps why we’re seeing some increased demand. And Northern Ireland respondents are still more confident about prices over the next 12 months than their counterparts elsewhere in England, Scotland and Wales, anticipating some upward movement."

Terry Robb, Head of Personal Banking at Ulster Bank, added: "2024 began with good demand through January and we expect that this will continue in the coming months. Ulster Bank remains strongly committed to supporting homebuyers and remortgagers in 2024. We recently reduced the rates on our new business and existing customer product ranges, which included rate reductions on two and five year deals for purchase and remortgage, as well as on our green mortgages. There continues to be a wide range of mortgage borrowers who want to buy their first home, move house, or remortgage, and it’s important that they continue to be able to avail of mortgage products that meet their needs."

RICS Senior Economist, Tarrant Parsons, said: "The UK housing market has seen a continued improvement in buyer activity through the early part of the year, supported by the recent easing in mortgage interest rates. Although sales volumes through much of the year ahead are likely to remain relatively subdued compared to the longer-term average, the outlook has now turned modestly brighter on a consistent basis over the past few survey reports.

"However, this is not to say that mortgage affordability isn’t still a significant challenge, and any further unwelcome surprises with regards to inflation may still cause interest rate expectations to be revised. That would then pose a significant risk to any prospective recovery in the months ahead, even if the current prognosis is for the market to see a further pick-up in activity levels."