The north’s housing market ended 2024 on a hugely positive note, with 5,700 newly agreed sales in the final quarter, an 11% rise on the previous year, an industry report shows.
But PropertyPal’s latest quarterly barometer also reveals that renters in Northern Ireland continue to face eye-watering increases, with annual price growth of 9% in 2024, pushing the average monthly rent to a record-breaking £942 on average.
The report said buyer confidence soared during October, November and December, supported by a 12% increase in newly listed properties for sale, with 4,527 homes added to the market during the quarter, which helped meet growing demand and contributed to heightened market activity.
The situation with house prices is also robust, with the price of an average home in Northern Ireland increasing by 6.4% on an annual basis. The growth was observed across all council areas on both a yearly and quarterly basis, with Derry City & Strabane experiencing the highest rise as average prices increased by 12.3% over the year to an average of £197,200.
The average price across all properties in Q4 was £253,700, according to PropertyPal, which was up 4.7% over the year and 1.2% over the quarter.
Newly listed properties for sale increased by 12% over the past year. On the pricing front, the average home now costs £221,000, marking a 6.4% annual increase and a 1.7% rise over the past three months.
Areas of the north with the most properties sale-agreed in the final three months of 2024 were Titanic, Belfast (188), Botanic, Belfast (171), Ormiston, Belfast (153), Lurgan (143), Lisnasharragh, Belfast (141), Craigavon (136), Castlereagh South (128), Newtownards (124) and Bangor Central (118).
Meanwhile rents in continue to rise, driven by a chronic under-supply of available properties, although Q4 showed some signs of moderation in demand intensity, coinciding with increased activity in the sales market.
PropertyPal’s report shows that a typical rental property now costs £942 per month, up 9% over the past year and 1.3% in the last three months.
Broken down by council area, the most expensive place to rent is Belfast (£1,102 per month) followed by Lisburn & Castlereagh (£955) and Ards & North Down (£941).
Rents are cheapest in Fermanagh & Omagh (£700 a month) followed by Mid Ulster (£711) and Armagh City, Banbridge & Craigavon (£744).
Jordan Buchanan, chief executive of PropertyPal, said: “On the supply side, there has been no significant increase in rental stock, with availability rising by just 1% year-on-year.
“Looking forward, rental demand is likely to ease further, and the pace of rental growth should continue to moderate, but the sector’s persistent structural supply challenges will remain a defining feature throughout the year.”
On the wider housing market Mr Buchanan added: “Looking ahead, buyer sentiment remains positive, with search activity on PropertyPal up 15% and enquiries to estate agents increasing at similar levels.
“While the broader economic backdrop remains uncertain, recent positive inflation data should offer some relief to the Bank of England as they consider future interest rate movements.
“How quickly this translates to changes in mortgage pricing remains to be seen, but early indicators suggest a busy first quarter of 2025 for the market.”
