House prices and rents increase in Derry City and Strabane

RENTS and house prices continue to rise in Derry and Strabane, according to new figures from PropertyPal.

House prices were 8.0 per cent higher in quarter four of 2025 than they were in the same quarter the year before, with the average price now £212,430.

Average rents in Derry City and Strabane were up 3.1 per cent in the same timeframe to £823 per month.

There were 296 agreed sales recorded in the area through quarter four.

The average monthly rent on a house in Northern Ireland reached £1,000 for the first time in in the final quarter of 2025, according to PropertyPal’s latest quarterly report.

Rental costs continued to trend upward in recent years, with average rents increasing by 5.6 per cent compared to quarter four in 2024.

The average monthly rent for a house was £1,001 and the average monthly rent for an apartment was £984.

This makes the average rent £995 overall.

In the sales market, activity remained steady in quarter four, with around 5,500 newly agreed sales and house prices increasing by 6.4 per cent year-on-year, bringing the average house price to £235,035.

Jordan Buchanan, chief executive officer at PropertyPal, commented on the Q4 2025 housing market: "Northern Ireland’s housing market ended the year on a strong footing, with steady sales volumes and the fastest price growth across the UK.

"There were approximately 5,500 newly agreed sales recorded in the quarter, broadly in line with long-term averages, and house prices have grown by 6.4 per cent year-on-year.

“Overall sentiment has improved following increased certainty from the Winter Budget and the Bank of England’s interest rate cut in December, which has already begun feeding through to more favourable mortgage conditions.

"Markets continue to price in further rate reductions over the coming year, which will further support affordability."

Mr Buchanan continued: "Overall demand remains exceptionally strong, with estate agent enquiries from PropertyPal at multi-year highs.

"Indeed, Q4 saw the highest volume of buyer enquiries per listing for the respective quarter since peak activity levels of 2021.

“However, supply-side constraints remain a key challenge. While it’s encouraging that 2025 saw a six per cent increase in resale listings, giving buyers more choice and contributing to overall market activity, new homes supply remains well below historic norms.

"This continues to be a critical policy concern and will constrain growth across 2026.

“Based on current indicators, we expect continued growth in both prices and sales volumes through the early months of 2026 and across the year more generally."

Commenting on the rental market, he continued: "Rising rents have been a defining feature of the housing market in recent years, and Q4 was no exception.

"The average rent is now just under £1,000 per month, with annual growth of 5.6 per cent compared to Q4 2024.

"While supply remained flat in the final quarter, the overall rental stock for 2025 increased by 11 per cent year-on-year, a much-needed improvement given the pressures in the market.

He added: "On the demand side, we’re seeing some signs of moderation in rent growth, but pressure to secure the property remains high.

"On average there were 52 enquiries per rental listing in Q4, up 13 per cent on last year and nearly 60 per cent above long-term norms.

“We expect rents to continue rising in 2026, likely in the four per cent to five per cent range, as structural supply imbalances continue to dominate market conditions."