NI house prices rising faster than any other UK region, index shows

Houses prices are rising faster in Northern Ireland than in any other UK region, according to a property price index.

For the UK as a whole, property prices ended the year on a strong footing - sitting just below an all-time high, according to the Nationwide Building Society.

UK house prices increased by 4.7% annually in December, accelerating from 3.7% in November, the Society reported.

In Northern Ireland, the figure was 7.1% but homes remain cheaper to buy here than all but two UK regions - Scotland and the North East of England.

Robert Gardner, Nationwide’s chief economist, said: “UK house prices ended 2024 on a strong footing, up 4.7% compared with December 2023, though prices were still just below the all-time high recorded in summer 2022.”

The all-time high, recorded in August 2022, was £273,751.

Mr Gardner added: “Northern Ireland was the best-performing area for the second year running, with prices up 7.1% over the year.

He continued: “Mortgage market activity and house prices proved surprisingly resilient in 2024 given the ongoing affordability challenges facing potential buyers."

Looking ahead, Mr Gardner said stamp duty changes from April “are likely to generate volatility, as buyers bring forward their purchases to avoid the additional tax”.

A temporary “nil rate” threshold for first-time buyers will shrink back to £300,000, from £425,000 currently. Stamp duty applies in England and Northern Ireland.

Sarah Coles, head of personal finance, Hargreaves Lansdown said:

“Like a salad or a spin class, property price rises made an unusual appearance in December, as the looming end of the stamp duty holiday persuaded people to leave the sofa for a spot of house hunting.”

She continued: “At a time when affordability is under so much pressure, your deposit will make a key difference, so it pays to consider whether there’s any way you can boost it.”

Here are average house prices followed by annual house price increases in the fourth quarter of December, according to Nationwide Building Society:

Northern Ireland, £197,696, 7.1%

North East, £164,696, 5.9%

North West, £218,012, 5.5%

West Midlands, £245,173, 4.7%

East Midlands, £235,877, 4.4%

Yorkshire and Humber, £207,373, 4.4%

Scotland, £187,016, 4.4%

South West, £306,730, 2.7%

Wales, £207,187, 2.7%

Outer Metropolitan (includes St Albans, Stevenage, Watford, Luton, Maidstone, Reading, Rochford, Rushmoor, Sevenoaks, Slough, Southend-on-Sea, Elmbridge, Epsom and Ewell, Guildford, Mole Valley, Reigate & Banstead, Runnymede, Spelthorne, Waverley, Woking, Tunbridge Wells, Windsor and Maidenhead, Wokingham), £422,372, 2.4%

Outer South East (includes Ashford, Basingstoke and Deane, Bedford, Braintree, Brighton and Hove, Canterbury, Colchester, Dover, Hastings, Lewes, Fareham, Isle of Wight, Maldon, Milton Keynes, New Forest, Oxford, Portsmouth, Southampton, Swale, Tendring, Thanet, Uttlesford, Winchester, Worthing), £336,224, 2.3%

London, £525,535, 2.0%

East Anglia, £272,152, 0.5%

Source: Vicky Shaw & Niall Deeney - Belfast Live