Northern Ireland’s increasing housing costs outstrip the rest of the UK, analysis reveals

Analysis from the latest UK Housing Review lays bare the reality of housing affordability issues, showing a continuous squeeze on pockets in Northern Ireland disproportionate to the rest of the UK.

The affordability index in the UK Housing Review makes the comparison of private rent to household income in different areas across the UK, highlighting the significant increase in Northern Ireland over the last twelve years. While costs across the UK have stayed almost the same relative to income (0.1 per cent), Northern Ireland’s rent-to-income ratio has jumped by nearly eight per cent (7.8 per cent).

For private renters looking to own their own home and escape the rising costs and limited supply in the rental market, options are becoming more costly. 

Data in the Review relating to average house prices across the UK highlights prices in Northern Ireland are climbing at a staggering rate. Between 2023 and 2024, average house prices in Northern Ireland rose from £196,000 to £213,000 – this is the highest percentage increase anywhere in the UK. 

Commenting on the analysis Georgia Knapp, policy and public affairs manager at CIH Northern Ireland said: “As we’ve previously flagged, new home starts in Northern Ireland have dropped to their lowest levels since 2013. New developments can’t get off the ground due to the catastrophic wastewater infrastructure crisis that continues to block the construction of new homes.

“Demand continues to outpace supply, leading to the data we can see in the latest UK Housing Review. It is clear to everyone that Northern Ireland urgently needs more homes, and the housing crisis is intertwined with an affordability crisis. The Executive needs to act urgently as more people are priced out of having a safe, secure and affordable home.”

The UK Housing Review is a primary source of housing analysis and data in the UK, containing over 200 charts and tables with the most important and up-to-date housing statistics available for the UK, Wales, Scotland and Northern Ireland, including English regional data. With international tables comparing the UK with selected countries in the EU and elsewhere. Publication of the Review is possible with the financial support of 21 organisations from across the UK including The Guinness Partnership and the Northern Ireland Housing Executive.