Northern Ireland’s housing market experienced one of the busiest starts to the year since the 2007 property boom, official government data shows.
Figures published by HMRC reveal the first quarter of 2025 was the second busiest opening three months for house sales in the north since the Celtic Tiger era.
A total of 7,130 home sales were registered by HMRC in the first quarter (Q1) of 2025, some 1,870 more than the same quarter in 2024.
It’s only the second time Q1 house sales have surpassed the 7,000 mark since 2007.
The only quarter to register more activity was the opening three months of 2021 (8,380), when the easing of Covid-19 restrictions prompted a huge upsurge in housing market activity.
HMRC’s data shows sales accelerating in Northern Ireland as the year progressed.
After 1,840 home deals in January and 2,140 in February, sales ramped up to 3,150 in March.
The acceleration came ahead of changes to stamp duty in Northern Ireland on April 1 2025, when the threshold for paying zero stamp duty land tax (SDLT) was lowered from £250,000 to £125,000.
Other changes mean first-time buyers now pay SDLT on homes priced above £300,001.
Prior to March 31 2025, first-time buyers were exempt from paying stamp duty on homes up to £425,000.
The increase in activity also coincided with falling interest rates over recent months.
The official bank rate has been cut from 5.25% last summer to its current rate of 4.5%.
Last week the north’s biggest lender Danske Bank said lending approvals for first-time buyers in Northern Ireland increased 50% year-on-year in the first quarter of 2025.
Meanwhile a new survey published this morning suggests demand among Northern Ireland homebuyers grew in April.
The latest residential market survey from the Royal Institution of Chartered Surveyors (RICS) pointed to a sharp increase in new buyer enquiries last month.
RICS’ residential spokesman in the north, Samuel Dickey.
However, survey respondents, which include property industry professionals based in Northern Ireland, continue to report shortages in supply.
They reported the number of homes coming onto the market fell for the third consecutive month in April.
RICS said the recent changes to stamp duty had likely influenced buying decisions prior to April.
The property body’s spokesman in the north, Samuel Dickey, said: “Amid wider economic uncertainty, Northern Ireland’s housing market appears to be broadly resilient.
“It’s encouraging to see surveyors in NI remaining positive on the outlook for sales and pricing, particularly when compared to other regions across the UK.
“We’re seeing competitive interest rates being offered by lenders, which may help in supporting new buyer activity, alongside rising wages. And whilst further interest rate cuts may support this forward movement by increasing affordability, the NI market continues to be impacted by ongoing supply issues.”