Northern Ireland’s Housing Market Shows Strongest Quarterly Growth of 2025

Northern Ireland’s housing market has recorded its strongest quarterly growth of the year, with the average house price rising by 5.4% in Q3 2025 compared to the previous quarter.

Northern Ireland’s housing market has recorded its strongest quarterly growth of the year, with the average house price rising by 5.4% in Q3 2025 compared to the previous quarter. The latest figures from Ulster University’s House Price Index, produced in partnership with the Northern Ireland Housing Executive and Progressive Building Society, show the average property price now stands at £220,303.

This marks a continuation of the upward trend seen throughout 2025, with annual growth of 3.3% compared to Q3 2024. Analysts attribute the buoyant market conditions to steady interest rates, held at 4% by the Bank of England, and increased competition among lenders, which has led to more attractive mortgage products and improved affordability for buyers with stronger deposits.

Detached and apartment sectors lead the way

Detached homes saw the most significant quarterly price increase at 3.7%, followed closely by apartments at 3.6%. Semi-detached properties rose by 0.9%, while terraced/townhouses remained largely flat, increasing by just 0.1%. The shift toward higher-value properties transacting was also evident, with 18% of transactions now occurring above the £300,000 mark, up from previous quarters.

Market confidence remains high

More than 75% of estate agents reported increased market activity, with more listings and buyer enquiries than in previous quarters. Agents noted that competitive lending conditions and stable interest rates have encouraged hesitant buyers to re-enter the market, contributing to a sense of optimism heading into the final quarter of the year.

However, affordability remains a concern, particularly for first-time buyers and those without substantial deposits. While more properties are coming onto the market, supply continues to lag behind demand, suggesting that upward pressure on prices may persist.

Looking ahead

With interest rates holding steady and lenders continuing to offer competitive products, the outlook for Northern Ireland’s housing market remains positive. Analysts expect steady, sustainable growth into early 2026, provided that supply constraints are addressed and affordability challenges are managed.

Introducing the findings, Dr Michael McCord, reader in valuation, investment and finance at Ulster University, and lead researcher, stated:

“Northern Ireland’s housing market continues to demonstrate stability, underpinned by strong buyer sentiment and an improving lending environment. The steady base rate and increasing competition among mortgage providers to reduce mortgage interest rates have supported affordability and helped sustain activity within the market with steady demand reflected in higher sales volumes and prices. Whilst the overall outlook remains positive, the findings also underscore persistent structural issues, notably housing supply constraints and affordability challenges for first-time buyers. As we move into the final quarter of the year, the market appears set for a period of steady and sustainable growth and the continuation of positive market momentum throughout the remainder of the year”

Ursula McAnulty, Head of Research at the Housing Executive, which commissions the analysis, said:

“Overall, Northern Ireland's housing market remains positive, market activity is strong and confidence is solid. With interest rates holding steady and lenders competing, the market looks set for a period of steady, sustainable growth rather than significant speculation or volatility.  That said, the structural shortage of housing continues, likely resulting in housing prices continuing to increase.  Affordability remains a key pressure point and barrier to market entry, especially for first-time buyers and anyone without a sizeable deposit.”

Michael Boyd, Chief Executive of Progressive Building Society, said:

“The Northern Ireland housing market has maintained its resilience through the third quarter of 2025, with continued price growth and strong buyer demand across most regions. The combination of steady interest rates, greater mortgage choice, and healthy competition among lenders has reinforced market confidence and supported sustained activity. While affordability and limited supply remain key challenges, sentiment across the market remains positive, with expectations of steady, sustainable growth into the final quarter of the year.”

Read the full report findings here.