Northern Ireland continues to face housing supply shortages and this appears to be impacting on sales activity, according to the latest Royal Institution of Chartered Surveyors (RICS) residential market survey. However house prices continue to rise and surveyors remain upbeat when it comes to the outlook.

A net balance of -34% of NI respondents was reported for new instructions to sell in the month of June, indicating that the supply of homes to the market is continuing to contract. Whilst this is the fifth consecutive month this balance has been in negative territory, it has at least eased a little from -51% in May. 

Demand from new buyers also eased back in May. A net balance of -12% of surveyors in NI reported a fall in new buyer enquiries. Similar to supply, whilst this figure remains negative, it is less negative than the -30% that was seen in the month previous.  

With these balances in mind, it is unsurprising that NI surveyors report that home sales declined through May. A net balance of -12% of NI respondents reported a fall in sales.

In saying that, the balance for sales expectations remains in positive territory at 15% of respondents. However, whilst this figure is positive, it is the lowest this balance has been in nearly two years (since August 2023).  

When it comes to pricing, respondents note an upward trend once again. A net balance of 88% of NI respondents reported a rise in house prices through Q2 2025. And this trend continues looking forward as a net balance of 64% of surveyors in NI anticipate that prices will rise through Q3. This is perhaps unsurprising with the supply of new homes to the market continuing to be constrained.

Samuel Dickey, RICS Northern Ireland Residential Property Spokesman, says: “The first half of 2025 has been relatively steady for NI’s residential property market as house prices continue to edge upwards. It is though no surprise that surveyors continue to report a fall in new properties coming to the market given the challenges the new build market is facing with a lack of wastewater infrastructure, planning delays and the increased cost of raw materials to name a few issues. But overall, it’s encouraging to see that respondents are relatively optimistic about activity levels over the coming months.”

Commenting on the UK picture, Tarrant Parsons, RICS Head of Market Research & Analysis, said: “The UK residential market appears to be entering a more settled phase, with demand showing signs of stabilising following a period of volatility. The earlier distortion caused by transactions being brought forward ahead of the Stamp Duty changes now appears to have largely dissipated, allowing underlying trends to re-emerge.

“Encouragingly, near-term sales expectations have begun to edge higher, pointing to a modest shift in sentiment. That said, confidence in the market remains somewhat delicate, with economic uncertainty at both the domestic and global level still seen as a potential headwind.“