Belfast Rent Prices Climb 4%

Property renters living in and around Belfast are paying 4.2% more in rent than they did a year ago, according to the results of a new report published today.

Leading online lettings site Citylets said strong demand from would-be first-time buyers had helped to push up average rent prices over the last 12 months, particularly for one-bedroom apartments, which recorded a hike of almost 8%.

According to Citylets' latest quarterly report on the private rented sector in Northern Ireland, the average rent paid across all property types at the end of March was £567- up from £544 a year ago.

The average monthly rent for a one-bedroom apartment was £492 against £456 at the end of March last year, while the average monthly rent for a two-bedroom apartment grew by almost 3% to £587.

The price of renting a three-bedroom home rose by 4.5% to £531 a month, while two-bedroom houses kept steady at around £446.

"Estate agents right across the Belfast City and Greater Belfast areas have seen no let-up in demand from private tenants still wary of making the move into home ownership," said Citylets market analyst Dan Cookson, who compiled the report.

“Although the number of mortgage products on offer from the banks is increasing, the size of the up-front deposit required continues to deter many people from getting onto the property ladder just yet."

The Citylets report also noted that ongoing worries about the impact of planned public sector job cuts, higher costs of living and rising energy prices were making that decision all the more difficult.

Dan added that it was no surprise the average age of the UK’s first time buyer was now 37, with the extra demand in the rental sector prompting landlords to up their charges - at least in line with inflation.

"Belfast remains one of the best value cities in the UK and Ireland in which to rent a property, however, and for private landlords who bought before the boom, rental property in Belfast still offers steady, long-term investment potential," he went on.

The report was cautious about the outlook for prices over the longer term and warned that the upcoming change in the rates regime could have a significant impact on sector prices.

From this October, property owners will be required for the first time to pay rates even when the property is empty, and all empty properties will be charged rates regardless of whether or not they are in the rental sector. For the owner of an empty regular two-bedroom terrace, this could mean an extra annual bill of around £750.

Dan added: "Demand for rental properties tends to be at its strongest between July and September, so we expect the market to remain strong until then, but we’re a little more uncertain about October onwards.

"We could see more rental properties coming on to the market as property owners try to recoup the rates money by getting in tenants or - for those who are already in the rental market - we could see a bigger adjustment in prices as landlords drop rents to avoid lengthy gaps between tenancies."

(GK/BMcC)