THE number of residential properties available to rent during 2021 was around 20 per cent below pre-pandemic levels, new data suggests.
The latest housing market trends report from PropertyPal said the 17,500 rentals listed during 2021 was almost 5,000 below the typical annual total before the onset of Covid-19.
The average rent in the north at the end of 2021 stood at £698 per month, representing an annual rise of 5.4 per cent. The report found a steeper rise in house rentals (6.5 per cent) compared with flats (3.5 per cent).
While a number of house price indices have recorded a double digit annual increase in house prices in Northern Ireland, PropertyPal recorded a more modest 5.5 per cent over the year, with the average property selling for £180,700.
But the report found a considerable drop in new properties coming onto the market.
Some 4,770 new properties were available to buy in the fourth quarter of 2021, 44 per cent lower than Q4 2020.
PropertyPal’s chief economist Jordan Buchanan, said there were signs market activity had cooled in recent months, with sales 16 per cent lower than Q4 2020 levels.
“More generally the market is expected to stabilise throughout 2022 with weaker price growth resulting,” he said.
“Indeed, overall price growth has already moderated with annual rates now sitting at 5.5 per cent and closer aligned to wage growth across the wider economy.
“An ongoing shortage of available properties alongside the latest Covid-19 omicron wave may weaken seller confidence, both of which will limit activity in the short term.”
