Northern Ireland House Prices Continue To Edge Upwards

Northern Ireland’s housing market closed out 2025 with steady growth, as the average house price rose to £221,233 in the final quarter of the year.

The latest figures from Ulster University’s House Price Index, produced in partnership with the Northern Ireland Housing Executive and Progressive Building Society, show a 0.4% increase on Q3 2025 and an annual rise of 4.8% compared to Q4 2024.

This performance reflects a market characterised by stability rather than acceleration, underpinned by strong buyer confidence and a more predictable interest rate environment. The Bank of England’s decision to hold rates at 4% through most of the quarter, followed by a modest cut to 3.75% in December, combined with competitive mortgage products, has supported affordability and sustained market activity.

Detached and apartment sectors continue to lead

Detached homes and apartments recorded the strongest quarterly price increases at 0.7%, while terraced/townhouses rose by 0.6%. Semi-detached properties softened slightly, falling by 0.2%, despite showing the highest annual growth at 4.2%. The market remains concentrated in mid-price brackets, with 83% of transactions below £300,000, and only 17% above this threshold, indicating limited movement toward higher-value segments.

Market confidence holds firm

Agent feedback suggests confidence remains robust, with over 60% expecting prices to hold steady or rise modestly into early 2026. Enquiry levels and bidding activity were broadly consistent with previous quarters, though affordability pressures and supply constraints continue to temper growth. While new listings are emerging, demand continues to absorb available stock, reinforcing price stability.

Regional picture

Quarterly price changes varied across Local Government Districts. Annual trends remain positive across all districts, with Fermanagh & Omagh (+11.7%) and Armagh City, Banbridge & Craigavon (+10.7%) leading the way. Annually, all districts showed price growth over the year as a whole, reinforcing the longer-term stability of the market.

Looking ahead

With interest rates easing and lenders continuing to compete, analysts expect the market to maintain a path of modest, sustainable growth into the first half of 2026. However, structural challenges around housing supply and affordability for first-time buyers remain key issues.

Source - Business Eye