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The province’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 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, according to the report. 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. For the best coverage of life in Northern Ireland, sign up to our newsletter now 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. 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.” The report provides the following breakdown on the average house price for Northern Ireland’s 11 council areas (listed respectively as average Q2 2025 (£), average Q3 2025 (£); % change Q2-Q3): Commenting on the findings, Ursula McAnulty, head of research at the Housing Executive, which commissions the analysis, said: “ 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 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.”
