Demand remains strong as house prices and rents both rise 3.6%
Northern Ireland remains a property hotspot, with average house prices up 3.6% in the past year, enquiries from potential buyers above the five-year average and rental demand remaining particularly strong, according to PropertyPal’s latest quarterly report.
It found that average house prices grew in all but one Northern Ireland council areas over the last year, with areas west of Lough Neagh performing particularly strongly.
Mid-Ulster saw the strongest annual house price growth at 10.5%, followed by Fermanagh & Omagh, which saw average prices rise by 7.6%, while Derry & Strabane saw a 6.7% increase.
Sales activity has eased a little, with 6,600 sales agreed over the last three months, compared to 7,000 a year ago. However, demand remains strong, with properties taking an average of 45 days to reach sale agreed and enquiries per listing 4% above the five-year average.
Rental demand strongest of 2026
In the rental sector, Q3 was the strongest quarter of 2026 so far for rental demand, with 67 enquiries per rental listing. Rents are up 3.6% on last year to £1,023 a month, adding around £35 a month for the typical tenant, with house rents (+4.3%) rising faster than apartments (+2.5%).
Rents have risen throughout Northern Ireland, with the fastest growth outside Belfast, where Newry, Mourne & Down and Causeway Coast & Glens are both up more than 6%. Houses are typically being let in 29 days, faster than both last year and the long-term average.
Jordan Buchanan, chief executive at PropertyPal, said: “Northern Ireland remains a bright spot in a weakening UK housing market. Sales activity has eased slightly, but demand indicators remain strong.
“Economic uncertainty has escalated across the UK in recent months, and with markets now expecting the Bank of England to raise rates before the end of the year, mortgage costs have started to edge up. Buyers are likely to become more cautious as a result, and the Autumn Budget on 28 October adds another variable.
“In the rental market, supply remains tight but is improving, with around 5% more rental properties added to the market than a year ago. Rising mortgage rates are likely to add further demand in the coming months, as some would-be buyers hold off and keep renting.”
