Analysis on the Northern Irish Housing Market for Q1 2022, including data on sales, rentals and new homes.
Northern Ireland saw an additional 7,542 new properties available to purchase in Q1 of 2022. This was a 13% increase in new inventory but a 17% drop in stock levels compared to Q1 in 2021.
The average price in Northern Ireland is now £183,700 – a 5.0% annual price growth and a 1.6% growth from last quarter. The average house price is now £188,400, with apartment values of £137,900. The annual price growth of both houses and apartments has increased by 5.0% and 4.7%, respectively.
House prices grew across every council area during Q1 however, Belfast was the only area to experience an annual decrease in price at -0.5%, where the average property now costs £193,200. Armagh City, Craigavon and Banbridge areas witnessed the largest quarterly increase of 2.6% to an average property price of £158,400.
Jordan Buchanan, Chief Economist at PropertyPal, commented on the performance of the housing market:
“The opening quarter of 2022 has shown continued momentum in the market performance, albeit activity and prices have cooled considerably compared to last year. An ongoing shortage of available properties will provide upward pressure on prices whilst demand remains strong, but headwinds are abound within the economic climate. Rising cost of living, higher mortgage rates and squeezed affordability alongside a weaker economic outlook suggest price growth will continue to moderate later in the year.”
The new-build market experienced the most significant growth in price across the sector. A 14% annual increase on new-build properties means the average new-build in Northern Ireland now costs £211,000. On average, a new-build house costs £213,100, a 13.6% annual price increase – more than double the price growth on existing homes. New-build apartments have also increased by 23.4% since 2021, now the average new-build apartment in Northern Ireland costs £191,600.
On the rental side, the average price of rentals is now £711 per month. This is an annual growth of 5.8% and a quarterly rent growth of 1.8%. The average cost of renting a house is now £708 per month, while the average cost of renting an apartment is £715. The annual rent growth of both houses and apartments has also increased, to 7.3% and 3.0%, respectively.
Jordan further commented on the performance of the rental market:
“The rental market pressures remain at unsustainably high levels. Rent inflation continues to outstrip wage growth and affordability pressures are growing, particularly for low-mid income households as the cost of living pressures take hold and are compounded by real-term cuts to government support. The market dynamics continue to be driven by a significant supply shortage against a large pool of competing tenants with overall demand more than double pre-pandemic levels.”
Last modified: 11/08/2022