The Northern Ireland rental market has made a strong start to 2025, with average rents reaching £960 per month in the first quarter.

This is an increase of 8.5% on last year, with an average of 49 enquiries for each advertised rental property. 

All areas saw rents increase on a quarterly and annual basis, with Lisburn & Castlereagh seeing the highest regional rent price growth at 10.5%.

The data comes from Northern Irish portal PropertyPal, and its chief executive Jordan Buchanan says: “The rental market in Northern Ireland has continued its multi-year trend of demand significantly outpacing available supply. The average rent now stands at £960 per month, reflecting an 8.5% annual increase and a 1.9% rise over the last three months.

“This upward pressure on rents has been felt across all regions and property types, confirming that supply constraints are not isolated, but widespread throughout the market.

“There are tentative signs that demand may be easing, albeit from historically high levels. Improvements in the sales market, supported by better borrowing conditions, may be encouraging some renters to consider a move into homeownership, helping to slightly relieve pressure on the rental sector.

“Looking ahead, the outlook for the rental market suggests continued growth in rents, though likely at a more modest pace than recent years, as market conditions gradually begin to rebalance.”

The situation with house prices and the sales market is also robust, with the price of an average home in Northern Ireland increasing by 8% on an annual basis when comparing Q1 2025 against Q1 2024. 

Price growth was seen across all areas on both a yearly and quarterly basis, with Derry City & Strabane experiencing the highest rise as average prices increased by 14% over the year.

Buchanan continues: “The Northern Ireland housing market has made a strong start to 2025, with approximately 6,200 agreed sales in the first three months of the year, broadly in line with the long-term average. 

“Encouragingly, homes are selling faster than usual, taking an average of 47 days to secure a buyer and more than two weeks quicker than the historical average. This points to continued strength in underlying demand. Supporting this, buyer enquiries per property increased by 15% compared to the previous quarter, signalling strong momentum that is likely to carry into Q2.

“On the pricing front, the market has seen further acceleration. The average property now stands at £226,000, marking an 8% annual increase. Recent figures from Nationwide also place Northern Ireland at the top of the UK regional growth rankings, underlining the relative strength of the local market.

“Looking ahead, the outlook remains mixed as economic uncertainty clouds the medium-term picture. The Office for Budget Responsibility has recently halved its UK growth forecast, and new tax policies introduced by the Labour government are increasing business costs from this month. In addition, rising global trade tensions may further impact economic confidence and market sentiment. However, on the positive side, the labour market remains resilient, with earnings continuing to outpace inflation. This, combined with expectations of further interest rate reductions, should help improve affordability and sustain activity in the months ahead.”