House prices in the Isle of Man are continuing their upward trajectory.

Figures published in the latest quarterly economic report to the Council of Ministers show that the average house price at the end of June this year was £386,566.

This is higher than the first quarter average of £384,179, and 2.9% higher than the same time last year.

In comparison, average house prices in the UK increased by 3.9%, to £269,000, in the 12 months to May this year, according to data from the Office of National Statistics (UK).

For the 12 months to the end of the June, the average house price was £386,566, a flat was £203,986 and the weighted property price - based on transaction volumes - was £352,185.

Island-based surveyors and valuers Livingstone said the average house now costs almost 10 times what the average worker earns.

In a property market review, it said: ‘Over the 12 months, average residential property prices on the Isle of Man continued their measured upward trajectory.

‘The average house price has climbed to £386,566. In contrast, the median full-time salary is £39,780, meaning the average house now costs almost 10 times what a typical worker earns.

‘The weighted average price is £352,185, still over 8.8 times the median income.’

Livingstone said the median house price to median earnings ratio has fluctuated between 8.5x and 10x since 2004, and has rarely fallen below this threshold.

‘While current figures are not unprecedented, they reinforce a longer-term pattern of affordability constraints that continue to affect local buyers,’ it said.

And it said the real picture is more complex, as the cost of living and limited disposable income many families and younger buyers are left with each month can make the sense of affordability feel far more strained.

During the 12 months to the end of the second quarter of this year, 999 houses and 258 flats were sold, up from 923 houses and 249 flats during the same period in 2024.

House transactions rose 8.2% year-on-year and flat transactions increased by 3.6%.

Livingstone said the recent uptick in transactions is modest compared with a post-pandemic peak in 2022 when 1,541 house and 424 flat sales were recorded.

And flat sales are notably lower than that peak, having declined for two consecutive years.

All property market data is based on the latest available data but there is always a time lag in transactions being registered with the Land Registry.

Unsurprisingly, Douglas dominated the housing market, accounting for the highest number of transactions over the past 12 months at 34.4%.

Ramsey and Onchan followed closely behind, with 18.1% and 14.3% of transactions respectively

Other property hotspots were Ballasalla and Peel, both at 7.8%, Port Erin at 6% and Port St Mary at 4.8%.

Livingstone concluded: ‘The Isle of Man property market remains active, with house prices holding firm and transaction levels showing signs of stabilisation.

‘But behind the headline figures lies real challenges, from long-standing affordability pressures to increasingly variable property conditions.’