Northern Ireland’s housing market maintained its stable and resilient start to 2026 during February, according to PropertyPal’s latest monthly snapshot.

Sales enquiries were up by +8.1% compared to the same month last year as potential buyers continued to be motivated by the relative affordability of buying compared to renting.

The average first time buyer mortgage repayment (30 year term) was £793 per month in February compared to £896 per month for the average equivalent rent.

As a result, rental demand has eased, with rental enquiries down 12.4% compared to the same month last year, albeit from historically high levels.

Whilst average prices and average rents both continued to rise, according to the latest snapshot, growing by 5.2% and 4.7% respectively over the past year, it is clear that rental growth continues to ease significantly from historically high levels.

Jordan Buchanan, Chief Executive Officer at PropertyPal, explains that what happens with interest rates in light of the impact from global events will be key in determining what happens with the market in the months ahead.

He says: “Northern Ireland’s housing market continues to show stable and resilient performance, with both house prices and rents growing by 5.2% and 4.7% respectively over the past year.

“There were approximately 2,150 newly agreed sales in February, marginally down 1.8% on last year but broadly in line with longer-term trends.

“There are clearer signs of a rebalancing between the sales and rental markets.

“Demand for homes to buy continues to strengthen, with enquiries to estate agents up 8.1%, while rental demand has eased, with enquiries down 12.4%, albeit from historically high levels.

“This reflects improved mortgage affordability in recent months.

“However, the outlook for interest rates has shifted in light of recent global developments. The Bank of England has signalled a more cautious stance, with renewed short-term inflationary pressures, particularly from higher food and energy prices. Markets are now pricing in the possibility of further rate increases this year.

“While the outlook remains uncertain, the path for borrowing costs will be a key factor impacting market activity in coming months.”