Northern Ireland house prices are rising faster than anywhere else in the UK, despite signs that sales activity is cooling.

Average prices increased by 3.6% year on year in August to £244,467, according to the latest PropertyPal market snapshot.

PropertyPal contrasted this with Lloyds data showing average UK prices down 0.4% over the same period.

However, the Northern Ireland market showed signs of losing momentum.

Around 2,150 properties reached sale agreed during August. That was 7% fewer than the 2,300 recorded a year earlier.

Sales enquiries also fell by 5.6%.

Despite the decline in activity, PropertyPal said homes took the same amount of time to reach sale agreed as they did in August 2025.

Prices rise as activity cools

Jordan Buchanan, chief executive of PropertyPal, said: “Northern Ireland house prices continue to grow at the fastest rate across the UK, up 3.6% over the last year.

“This compares to average UK prices falling by 0.4%, according to the latest data from Lloyds.

“There were approximately 2,150 properties agreed for sale during August, down 7% on last year’s 2,300, with wider data points showing some cooling in market activity.”

Buchanan said uncertainty over inflation and interest rates had affected confidence across the wider housing market.

He added: “Even so, it’s taking buyers exactly as long to agree a sale as it did a year ago, which suggests underlying demand remains healthy.”

Rental enquiries also fall

Northern Ireland’s rental market also recorded a slowdown in enquiries.

Rental enquiries fell by 3% year on year in August, while the average monthly rent stood at £1,023.

Buchanan warned that the outlook for the housing market remained uncertain as borrowing costs come under renewed pressure.

He said: “Financial markets are no longer pricing in rate cuts, and are now leaning towards the Bank of England raising interest rates before the end of the year.”

For agents, the August figures point to a market where prices continue to rise despite fewer enquiries and fewer properties reaching sale agreed.