Transaction volumes in Northern Ireland’s housing market are rising as first time buyer and investor activity increases, according to the RICS (Royal Institution of Chartered Surveyors) housing market survey.

All contributors to the Ulster Bank sponsored survey for Northern Ireland said that house sale levels had either remained the same (54 per cent) or increased (46 per cent) in the past three months.

However surveyors remain cautious about prospects for the market, with the majority (79 per cent) expecting no further increase in transaction levels in the three months ahead.

RICS Northern Ireland spokesman, Tom McClelland, says that this is because the Christmas period is generally a quiet one for the housing market. But he also points out that the end to the stamp duty holiday and concerns about the impact that public spending cuts will have in Northern Ireland could dampen further recovery in activity.

Tom McClelland MRICS, RICS NI Residential Spokesperson said: “We are still experiencing activity that is well below normal levels, despite the undoubted increases that there have been. Given the importance of the housing market to the local economy, many sectors will be watching closely to see if the new year brings further rises in transaction volumes.

Activity in recent months has strengthened but there remains, understandably, caution in the market. There are significant economic challenges to come, particularly relating to cuts in public sector expenditure. And the ending of the stamp duty holiday is not a welcome development for the housing market”.

With regard to prices, the survey reports a mixed picture. Overall, the price balance remains in negative territory, but some chartered surveyors are reporting price rises and the majority (59 per cent) are reporting that prices are stable.

Derek Wilson, Head of Lending Products at Ulster Bank added: “2009 has brought significant improvements in the local housing markets in terms of increasing price stability and rising transaction levels.

There are no doubt challenges ahead, but it is felt that, despite those, 2010 will see further improvement. As a bank, we remain absolutely committed to providing mortgage lending to support the increasing number of home purchasers and movers.”