The Northern Ireland housing market has seen a strong start to 2025, according to PropertyPal’s latest housing market update.
There were 6,200 agreed sales in the first three months of the year, with homes reaching ‘sale agreed’ 16 days faster than normal. House prices have increased by 8% on a like-for-like basis for Q1 2025 compared to last year.
According to the report, price growth was evident in all council areas on both a yearly and quarterly basis, with Derry City & Strabane experiencing the highest rise of 14% during the year. Meanwhile, buyer enquiries per property also increased, up by 15% compared to the previous quarter.
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In the rental market average rents rose 8.5% on last year to £960 per month in the quarter. Tenant interest is high, with an average of 49 enquiries for each advertised rental property. All council areas also saw rents increase on a quarterly and annual basis, with the highest regional rent price growth seen in Lisburn & Castlereagh, up 10.5%. Jordan Buchanan, chief executive officer at PropertyPal, says that poor growth forecasts, new tax policies and economic uncertainty cloud the medium-term picture for house sales. “However, on the positive side, the labour market remains resilient, with earnings continuing to outpace inflation,” he says. “This, combined with expectations of further interest rate reductions, should help improve affordability and sustain activity in the months ahead.”
“Looking ahead, the outlook for the rental market suggests continued growth in rents, though likely at a more modest pace than recent years, as market conditions gradually begin to rebalance.”
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