House prices in Derry City and Strabane increase by 14.5 per cent

DERRY and Strabane had the strongest annual growth in average house prices over the past year.

The latest figures released in PropertyPal’s Northern Ireland Housing Market Update for Quarter Two show that house prices in the council area rose by 14.5 per cent when compared to the same quarter of 2024.

The Northern Ireland housing market continued on a strong footing through the second quarter of the year, with over 7,100 home sales across Northern Ireland between April and June.

This is up 12 per cent compared with the same period in 2024. 

As well as more sales, residential properties in NI also reached ‘sale agreed’ four days faster than in the April to June period last year. 

Price growth also strengthened, with the average house price in Northern Ireland increasing by 8.9 per cent on an annual basis to just over £230,000.  

Derry City and Strabane experienced the highest average price rise at 14.5 per cent over the year, with the average house price in the council area being £209,945 in the second quarter of this year.

There were 352 agreed sales in the council area in the same quarter.

Other neighbouring districts also experienced some growth, with property prices in the Fermanagh and Omagh council area rising by 4.4 per cent.

 Speaking of the increases, Jordan Buchanan, chief executive officer at PropertyPal, said: "Northern Ireland’s housing market continued to perform strongly through the second quarter of the year, with activity levels and price growth both ahead of long-term trends.

WThere were approximately 7,100 newly agreed sales between April and June, which is around three per cent above the long-run average.

"Properties are also selling more quickly, with the average time to secure a buyer now just 38 days, down from 42 this time last year, and well below the longer-term average of 50 days."

He added: "This strength is reflected in buyer activity across PropertyPal too, with search volumes up 12 per cent year-on-year and enquiries per advertised property increasing by three per cent.

"This sustained demand has contributed to continued growth in house prices, with the average home now valued at around £230,000, up 8.9 per cent over the past 12 months. 

“Price growth in Northern Ireland is the highest across all UK regions, with recent Nationwide figures showing a similar trend, in contrast to the more modest 2.9 per cent growth across the wider UK market. 

“While economic uncertainty and some softening in labour market conditions may temper momentum slightly, household finances remain in relatively good shape.

"The Financial Conduct Authority’s recent plans to ease lending restrictions, alongside the prospect of further interest rate cuts later this year, should support affordability and help maintain activity in the months ahead.”