Both rents and house prices up 3.8% year-on-year in second quarter

The average property in Northern Ireland has risen by nearly £9,000 in price over the last 12 months, according to PropertyPal’s latest quarterly report. 

It shows that the average property price in Northern Ireland reached £239,234 in the second quarter of 2026, a 3.8% rise compared to the same time last year. However, the figure is down from the exceptional 5.0% rise recorded in the first quarter of 2026. Fermanagh and Omagh saw the most substantial rise in property values in Q2, up by 10.3%.

Demand has also risen, with the number of enquiries to estate agents per advertised property up 7% on last year. The number of sale agreed properties reached 6,699 with sales happening fast, typically agreed within 36 days. This is around two weeks faster than the long-term norm.

Acute supply shortages

However, PropertyPal warns that supply shortages continue to be acute. Around 6,500 new second-hand listings were added to the market in the quarter, fewer than the number of transactions agreed, meaning stock available to buyers has continued to tighten.

Jordan Buchanan, chief executive officer at PropertyPal, said: “Northern Ireland’s housing market continued to perform robustly across the second quarter.

“Enquiries to estate agents per advertised property were up 7% on last year, pointing to a healthy pipeline heading into the summer months but supply pressures remain a defining feature of the market. Alongside the well-documented challenges facing new-build supply, this remains a core constraint on activity, set against a strong demand backdrop.

“Recent improvements in macroeconomic conditions point towards a gradual easing in mortgage rates, while the local economy remains a bright spot, with steady growth, a strong labour market and real wage growth supporting affordability. Together, this should improve household confidence and support market conditions through the remainder of the year.”

Rents and rental demand also up

Rents have also risen 3.8% annually, adding nearly £40 a month to the average Northern Ireland tenancy over the past year with a typical rental property now costing £1,013 per month.

Rental demand, meanwhile, is up 11% on last year, with an average of 63 enquiries to estate agents per advertised rental property.

Buchanan said: “This demand is spread across Northern Ireland, with every local area seeing growth in both tenant demand and annual rent growth over the past 12 months. New rental supply started the year encouragingly but has since slowed, with total available inventory now down 5% on last year. Against this backdrop, we expect rental growth to continue at a moderate pace through the remainder of 2026, as structural supply constraints continue to persist.”