NI has bucked the trend in comparison to the rest of the UK where house price growth as slowed
Average annual house price growth in Northern Ireland jumped by 9.2% in the second quarter of 2026, significantly bucking the trend across the rest of the UK, where price growth has slowed.
The latest figures from the Office for National Statistics (ONS) reveal that the average house price in Northern Ireland reached £202,000 between April and June 2026. This represents a £17,000 increase from the same period last year and marks the highest annual inflation rate for Northern Ireland since the fourth quarter of 2022.
The ONS attributed the rise in the annual inflation rate to a larger price increase between the first and second quarters of this year (2.1%) than in the same period in 2025 (0.6%). Lower price growth in early 2025 had coincided with Stamp Duty Land Tax changes introduced on April 1, 2025.
Relative affordability in Northern Ireland means that higher borrowing costs have also had a proportionally smaller impact on buying power than in other parts of the UK.
In contrast, broad national momentum across the UK slowed significantly. Across the UK as a whole, average annual house price growth slowed to 2.0% in the 12 months to June 2026, down from 3.0% in May, bringing the average UK property value to £272,000. Average house prices increased by 1.8% in England (£293,000), 1.8% in Wales (£213,000), and 2.3% in Scotland (£195,000).
The figures were released alongside broader economic data showing that the UK Consumer Prices Index (CPI) inflation accelerated to 2.9% in July, up from a 15-month low of 2.6% in June, driven by a surge in gas costs.
David Hollingworth, associate director at L&C Mortgages, noted that the inflation increase was largely in line with market expectations. However, he warned that “financial markets are already factoring in the threat of interest rates having to climb to combat higher inflation,” adding that the backdrop remains volatile for prospective borrowers.
On the rental side, the ONS reported that private rent inflation continues to rise nationally, with average UK monthly private rents increasing by 3.7% in the 12 months to July 2026. In Northern Ireland, average private rents increased by 2.3% in the 12 months to May 2026, reaching an average of £875.
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