The average house price in the Isle of Man rose by 3.6% to £393,735 last year.

Statistics on the state of the island’s housing market have been released by Cabinet Office.

They show that the average house price in 2025 was £393,735, an increase of 3.6% compared with 2024, while the average flat price was £213,122, an increase of 6.8%.

The weighted average of house and flat sale prices over a 12 month period was £358,320 in 2025, an increase of 4.5% compared to the previous year.

There were 917 house transactions over the year, down from 1,184 in 2024, while the number of flat transactions also decreased, down from 260 to 250, a decrease of almost 4%.

Houses sold for between £250,000 and £500,000 continue to make up almost two thirds of all house sales (65%), while those sold for between £500,000 and £750,000 make up 14% of all house sales in 2025.

The proportion of houses sold for under £250,000 decreased slightly from 16% in 2024 to 14% in 2025.

At the top end of the market, sales over £750,000 now make up 7% of all house sales, increasing from 5% in 2024.

Overall, houses sold for £250,000 or more make up for 86% of all house sales.

Prices are higher relative to earnings than they were during the 1990s.

Average house prices were 8.2 times average annual earning in 2025, but the affordability ratio is down from a peak of over 10 times annual earnings in 2023 and 2009.

In 2025, the lowest quartile house price was 10.1 times the median salary for those aged between 18 and 25 but the earnings ratio has improved over the last three years, having fallen from 11.4 times the median salary in 2022.