With average house prices rising by 3.6% in the past year and enquiries from potential buyers above the five-year average, Northern Ireland has been called “a bright spot in a weakening UK housing market” by website PropertyPal.

All but one Northern Ireland council area saw average house prices increase over the past year, according to the leading property portal’s analysis, and council areas west of Lough Neagh are faring particularly strongly.

Mid-Ulster saw the strongest annual house price growth of all council areas at 10.5%, followed by Fermanagh & Omagh, which saw average prices increase by 7.6%. Derry & Strabane saw average values increase by 6.7%.

Despite a slight easing in sales activity at a Northern Ireland level, buyer demand remains strong, with properties taking an average of 45 days to reach sale agreed.

A spokesperson for the site says Northern Ireland is well placed for growth to continue, but that there will be more headwinds to come.

“Local prices are up 3.6% over the past year, adding around £9,000 to the average home value. Sales activity has eased slightly, with 6,600 sales agreed over the last three months compared to 7,000 a year ago, but demand indicators remain strong: homes are typically finding a buyer in 45 days, and enquiries per listing are 4% above the five-year average.

“However, 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 Budget on October 28 adds another variable.

“For now, Northern Ireland is well placed to continue its recent run of sustainable growth in prices and sales. But the macroeconomic headwinds are building and are expected to weigh on the market later this year.”

Commenting on the rental market, the spokesperson adds: “Rental demand remains exceptionally high, though it has gradually cooled from the peaks of a couple of years ago. There were 67 enquiries per rental listing, the strongest quarter of 2026 so far. 

“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 in every part of 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.

“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.”