Firstly the latest data from the housing market survey produced by the Royal Institute of Chartered Surveyors and Ulster Bank shows that the price balance was at its highest since April 2007.
It was the seventh consecutive month in which more chartered surveyor respondents reported rising prices than falling prices, and it was the highest reading in more than 80 months.
Secondly, data from the Council for Mortgage Lenders indicates that the number of loans advanced to first time buyers in the fourth quarter of 2013 grew to its highest level since the middle of 2007.
Lending to home movers and remortgagors has also increased, continuing the upward trend in Northern Ireland over the last three quarterly periods. Overall the number of mortgages was up 11% compared to 2012 and the value of these loans was £880 million, up 10% compared to 2012.
In the RICS survey a net balance of 62% of respondents to the survey said that prices were up in the three months to the end of December. Overall 62% said that they were higher in the period, 37% said that they were the same and none said that they were lower.
This follows positive data in the June, July, August, September, October and November surveys, the first time since the property price peak that there has been seven months in a row of a price balance above zero.
‘There was a real contrast in how 2013 started and ended, according to the survey. January 2013 was the latest in a long line of months in which the survey reported a price balance in negative territory,’ said Samuel Dickey, RICS spokesman.
‘However fast forward to the end of the year and the data is considerably more positive. The housing market has followed a similar trajectory to the economy as a whole, with the second half of 2013 showing real signs of recovery,’ he explained.
‘Whilst the market will see variations in different locations and property types and will continue to experience challenges, the trend of improvement is expected to continue into 2014. RICS expects Northern Ireland house prices to rise by an average of 4% during the year,’ he added.
Derek Wilson, head of lending products at Ulster Bank, said that since the property price peak the bank has lent over £1.75 billion in mortgages but he warned there are still challenges ahead.
‘Whilst the number of first time buyers has increased significantly, the home mover market remains much more static, as many people take time to adjust to the new reality and set their expectations accordingly,’ he explained.
‘But with a degree of confidence returning, and a greater sense of realism evident in property values, both on the part of sellers and buyers, 2014 should see the market continuing to improve,’ he added.
The CML data also shows that first time buyers borrowed, on average, £70,200 in the fourth quarter of 2013, a slight increase from £70,000 compared to the third quarter and on average, borrowed 2.85 times their income, the same as in the third quarter of 2013.
‘It is encouraging to see increases in all types of lending in Northern Ireland as economic conditions improve. The market was driven by first time buyers in the earlier quarters of 2013 so it is welcome to see remortgage and home mover lending levels grow, which allows for a degree of optimism going forward in 2014,’ said Brian McCormick, chair of the CML in Northern Ireland.
