Northern Ireland’s housing market is now faring marginally better in terms of price falls than most other regions in the UK, a report said today.
But the Royal Institution of Chartered Surveyors (RICS) said the volume of sales remained low in July and was at a virtual standstill in many areas — exacerbated by the difficulties first-time buyers were having in getting a mortgage.
The RICS said there was continuing uncertainty among buyers and took a swipe at government saying confusion over the treasury position on stamp duty was making matters worse.
Amid the continuing housing gloom asking prices have been cut "aggressively" in some areas.
Across Northern Ireland 88 per cent of surveyors last month reported falling rather than rising prices — 4 per cent more than in June.
However, seven of the 12 UK regions fared worse than the province. In the North of England the figure was 98 per cent, 96 per cent in Yorkshire and Humberside, and 90 per cent in the South West and 89 per cent in East Anglia.
"Low sales levels are not unexpected during July; however, continued uncertainly amongst potential buyers and difficulties that first-time buyers are experiencing obtaining mortgage finance have resulted in the housing market being at a virtual standstill in many areas," said RICS Northern Ireland housing spokesman Tom McClelland.
"Confusion over the Treasury position on stamp duty will not help sales levels in the near-term, however, asking prices have already been cut aggressively in some sectors of the market and in many parts of Northern Ireland."
The expectation was that the price cuts would eventually tempt buyers back — particularly if new initiatives from government and lenders to support first-time buyers were forthcoming.
Mr McClelland said: "Some agents are already reporting an increase in inquiry levels in some areas as many seek bargains."
The monthly survey is sponsored by the Ulster Bank whose head of mortgages insisted their doors remained open to mortgage business.
Derek Wilson said: "There is uncertainty amongst homebuyers and those remortgaging and it is therefore more important than ever that they avail of the best mortgage advice available.
"Consumers should ensure that they fully investigate their options in order to avail of the most suitable products to meet their individual needs."
PA