House price growth across the UK experienced a modest slowdown in the second quarter of 2025, according to the latest regional indices. The data, covering the three months to June, shows a cooling in property price momentum in most parts of the country. However, Northern Ireland continues to stand out, maintaining the highest annual growth rate among all regions.
How Stable is House Price Growth in Northern Ireland and the rest of the UK
While the UK housing market has remained relatively stable overall, the pace of house price growth appears to be easing. In Northern Ireland, annual house price growth slowed to 9.7% in Q2 2025, down from 13.5% in the first quarter. Although this represents a deceleration, the region remains well ahead of others in terms of property price performance. This level of growth is consistent with recent trends observed in the border regions of Ireland, where demand continues to outstrip supply.
Scotland also saw a respectable rise in house prices, with a 4.5% annual increase. Meanwhile, Wales recorded a more modest 2.6% growth rate over the same period. These figures reflect a broader cooling across the UK, where economic pressures and shifting market sentiment have started to impact housing demand and affordability.
How Does this Affect Northern Ireland Home Buyers?
One of the key takeaways from the latest data is that house price growth is becoming more regionally varied. In previous years, growth patterns tended to be more uniform, but 2025 has brought greater divergence. While Northern Ireland continues to show robust performance, other regions are facing the effects of higher borrowing costs and tighter affordability, which are tempering price rises.
Mortgage Solutions Belfast has observed these trends firsthand, noting an increase in client enquiries around affordability and mortgage options in a changing market. The softening of house price growth may offer new opportunities for first-time buyers or those looking to upsize, especially in areas where prices are stabilising or increasing at a slower rate.
It’s also worth noting that while the headline figures suggest a slowdown, house price growth is still positive in all reported regions. This indicates that the market is not in decline, but rather adjusting to new economic realities. Buyers and sellers alike should remain confident, but approach the market with a clear understanding of local conditions and financial planning.
Staying Informed Is the Key to Navigating The Property Market
For anyone navigating the property market in 2025, staying informed about regional house price growth is essential. Factors such as employment rates, local housing supply, and mortgage availability all play a role in shaping property values.
Looking ahead, the trajectory of house price growth will likely continue to vary across regions. While the national average may reflect slower growth, pockets of strong demand and limited supply will continue to support price increases in specific areas. Northern Ireland is a prime example of this trend, maintaining solid growth despite a slight easing from earlier in the year.
In conclusion, the latest data on house price growth provides a snapshot of a market in transition. While the pace may be slowing in many regions, the underlying fundamentals remain resilient. With expert guidance and careful planning, buyers can still find value and opportunity in the current landscape.
Thinking of Buying Your First Home or Moving?
If you’re considering a move or looking to refinance in light of these changes, get in touch with an expert mortgage advisor, who can help you assess your options and take advantage of the opportunities this evolving market presents.
