House prices expected to rise by 5% over the coming 12 months

Survey found 92% of estate agents describe current residential property prices as expensive or very expensive — up from 84% six months ago

Majority of estate agents describe current residential property prices as expensive or very expensive. 

House prices are expected to increase by on average 5% over the next 12 months, according to the Society of Chartered Surveyors Ireland, as the availability of housing “continues to fall short of requirements across many regions”.

The SCSI conducted a survey of its members, which found estate agents expect national property prices to increase by an average of 5% over the next 12 months, a slight increase on the 4% forecast six months ago.

It also found 92% of agents describe current residential property prices as expensive or very expensive — up from 84% six months ago. Just 6% consider property represents fair value, down from 12% a year ago and 17% in 2024.

Almost two thirds of agents, 64%, believe prices are increasing but will level off soon, with a further 18% believing they have peaked.

Most agents reported stable or easier lending conditions in the residential market in the first six months of 2026. Almost half, 48%, saw no change, and a further 39% highlighted a slight improvement.

The SCSI sales instruction index moved from negative to positive territory, moving from -5% to +12%, which the society said indicated “more agents are experiencing an increase in sales instructions”.

Vice-president of the SCSI Emer Byrne said the housing market was still dealing with the issue of supply and demand as well as affordability pressures.

“While housing completions have increased and agents report a modest improvement in sales instructions, the availability of housing stock on the private market continues to fall short of requirements across many regions,” she said.

In the first half of this year, 38% of estate agents cited the volume of new homes being built as the key factor shaping their 12-month house price expectations, while the next most commonly cited reason —  changes in the state of the economy — was cited by 23% of agents.

“Overall, demand remains resilient, supported by stable labour market conditions, continued population growth and improving mortgage credit availability. Indeed, the strong take-up of finance maybe translating into price pressure rather than more accessible buying,” Ms Byrne said.

Agents continue to anticipate further house price increases over the coming 12 months, albeit at a more moderate pace than experienced in recent years.

In its latest residential mid-year market monitor, the SCSI also conducted an affordability assessment.

Case studies

The four scenarios were designed to show the affordability gap for a couple earning a combined gross income of €113,000 looking to buy their first home based on new house median purchase prices in four different locations.

The couple are looking to buy a new privately built three-bedroom semi-detached home and have the 10% deposit due to the Help to Buy Scheme and savings.

The scenarios looked at Meath, Kildare, Wicklow and Cork, and the only county the couple could afford to buy in was Cork.

The case studies indicate prospective buyers in Kildare would face a shortfall of almost €25,000, in Wicklow it would be €20,500 while in Meath it would be €11,500.

“While a new three-bedroom semi-detached home is affordable in Cork, new three-bedroom semi-detached homes in Kildare, Wicklow and Meath remain out of reach for people on these salaries,” Ms Byrne said.

“The pattern agents are seeing is a persistent divergence between income growth and property values, as the marginal gains in purchasing power are offset by property price growth wherever the demand is strongest. 

"In addition, it has to be remembered that there are thousands of people on lower salaries who will not be able to buy and will require support.” 

In the rental sector, the SCSI said tenancy registration numbers remained at record levels nationally, with agents report sustained landlord sales activity and continued exits by smaller rental providers.

Survey responses indicate more agents are experiencing an increase in sales instructions from landlords.

Agents say landlords are leaving the market due to a mix of financial and regulatory pressures.