Average house prices in Northern Ireland are likely to remain largely flat over the next two years as the market faces a long and slow recovery, experts warned.
The Royal Institution of Chartered Surveyors (RICS) said its latest survey of the region’s housing market showed there will be no rapid revival for the sector as the wider economy is set for a slow and uneven recovery.
And it warned that conditions could be made more difficult after the general election, with public sector spending cuts likely to be introduced by the next Westminster government.
Derek Wilson, head of lending products at Ulster Bank, which sponsored the RICS survey, said: “It is true to say that anyone hoping for strong price growth in the near future will likely be disappointed.”
RICS spokesman Tom McClelland said that while housing market transaction levels are rising, the survey showed that any improvement will be at a slow rate.
“The housing market, like the economy, is in recovery mode. However, like the economy, recovery in the housing market is going to be slow,” said Mr McClelland.
“Housing transaction levels, which are the most important factor in the housing market recovery, are rising, but at a marginal rate, and are still a long way off what you could call normal levels.
“In terms of prices, there continues to be some movement, but we anticipate that average house prices will be broadly flat over the course of the next couple of years.
“However, there will be variations and there are risks.”
Ulster Bank spokesman Mr Wilson added, however, that buyers could benefit in the current climate. He said: “It will be encouraging for those seeking to purchase a home that the market is moving increasingly away from what were abnormal market conditions and into a period of greater stability.”
