The property market in the North of Ireland has entered 2025 with renewed energy after a somewhat hesitant close to 2024. With buyer confidence returning and prices showing solid annual growth, both first-time buyers and existing homeowners have plenty to consider.

📈 Price Trends & Market Growth

Average property prices across the North of Ireland have seen encouraging growth in early 2025. While quarterly changes may fluctuate slightly, year-on-year price growth remains steady. The average home now sits around the £213,000 mark [1], with some areas—particularly outside Belfast—seeing even greater percentage increases.

This strong performance is being driven by a few factors: increased demand, constrained supply, and better mortgage rates than we’ve seen in recent years. Urban and suburban areas alike are seeing competition heat up, especially among first-time buyers keen to escape high rental prices.

🏗 Supply & Housing Availability

One of the key themes shaping the market is limited housing supply. New-build activity has slowed in recent years, with infrastructure issues like sewage capacity bottlenecks still delaying developments in some regions [2]. With fewer new homes being delivered, the market has seen existing homes snapped up faster than usual.

Currently, average sale times have dropped, with many properties going under offer in well under two months—sometimes in just a few weeks, particularly in popular areas [3].

🔍 Buyer Sentiment & Affordability

While buyer confidence is on the rise, affordability remains a key concern. With house prices growing faster than wages, many buyers—especially younger or single applicants—are being more cautious about how much they borrow.

That said, mortgage lenders are gradually reducing rates, and fixed-rate deals under 4% are increasingly available for those with good credit and healthy deposits [4]. This is helping many potential buyers get back into the market, with brokers reporting increased activity since early 2025.

Rising rent prices are another motivator. With average rents now edging towards £1,000 per month [5], some renters are finding that mortgage repayments could actually be more affordable than renting, provided they can meet the deposit and upfront costs.

📊 Regional Variations

Different regions are experiencing different levels of demand and price growth. Areas like the Causeway Coast and rural parts of County Down are seeing double-digit price increases annually [6], partly due to lifestyle appeal and post-pandemic shifts in working patterns. Meanwhile, Belfast continues to perform well, albeit with more modest price rises.

The shift toward more energy-efficient and eco-conscious properties is also influencing buyer preferences, with modern homes offering better energy ratings often commanding stronger interest.

💼 Investor and Rental Trends

The investment market has seen a mixed picture, with some hesitation due to inflation and geopolitical uncertainty. However, the buy-to-let market remains attractive in areas with strong tenant demand. With rental availability low, yields have remained competitive, particularly in university towns and commuter belts [7].

New build-to-rent schemes are gradually increasing, particularly in Belfast and other key towns, offering modern, energy-efficient rental homes that meet evolving tenant expectations.

🔮 What to Expect for the Rest of 2025

Looking ahead, analysts predict steady growth across the market, though not without challenges. Supply limitations and economic headwinds could keep house prices high and competition strong. However, further interest rate cuts are expected later in the year [8], which may open up more opportunities for buyers and improve affordability.

Demand is likely to stay strong, especially from first-time buyers and renters hoping to get on the property ladder, which will continue to support price growth.

🧭 What This Means for You

Whether you’re a first-time buyer, homeowner, landlord, or simply exploring your options, the current market holds both challenges and opportunities:

First-Time Buyers:
Start planning early. Sorting your deposit, checking your credit file, and speaking to a mortgage broker can help you act quickly when the right property comes along.

Homeowners Looking to Move:
With equity on your side and prices still rising, it’s a good time to consider a move—but make sure your onward purchase is sustainable, and budget for moving costs and mortgage changes.

Remortgaging Clients:
With many fixed rates due to expire in 2025, now is the time to start reviewing your options. A lower rate could save you thousands—especially if you act before your current deal ends.

Buy-to-Let Investors:
If you already own property, rising rents and high tenant demand make this a favourable time to explore buy-to-let—especially with the right financial planning and product.

 

🤝 How Mc Daid Mortgages Can Help

At Mc Daid Mortgages, we’ve been helping local people just like you since 1996 — and we’re proud to be on your side every step of the way. Here’s what we offer:

✅ Whole-of-market mortgage advice
We’re not tied to one lender, so we search the full market to find the deal that’s right for you.

✅ No upfront fees
Initial advice is free. We’re only paid if your mortgage successfully completes and we arrange your insurance.

✅ Honest, friendly guidance
We explain everything clearly — no jargon, just practical support from start to finish.

✅ Help with everything
From your Decision in Principle to final completion, we handle all the paperwork and lender communication for you.

✅ Support for every situation
Whether you’re self-employed, a first-time buyer, moving home or remortgaging — we’ve got you covered.

✅ Ongoing mortgage reviews
We don’t forget about you once the deal is done. We regularly review your mortgage to make sure it still suits your needs, term, and rate.

🔗 References:

1. Ulster University House Price Index Q1 2025
2. Financial Times – Northern Ireland Housing Infrastructure Report
3. NI PropertyPal Market Trends – Q1 2025
4. The Progressive Building Society Housing Outlook
5. NI Rental Market Watch – Early 2025
6. Irish News – House Price Growth by Region
7. Belfast City Council Investment Guide 2025
8. Zoopla UK Housing Market Predictions for 2025

📞 Call us: 07968155176
📍 Visit us: 40, Coneyville, Derry, BT48 8FW
📧 Email us: pat@mcdaidmortgages.co.uk
🌐 Website: www.mcdaidmortgages.com

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