RENT prices have soared by 15% in some parts of the north, new analysis by PropertyPal suggests.
The latest market report from the online lister suggest the average rent in the north increased to £810 during the third quarter of 2023, 9.5 per cent higher than a year earlier.
But eight districts have experienced double-digit surges in rent prices year-on-year, with the sharpest spike recorded in Mid & East Antrim at 14.9% year-on-year, just ahead of Casuseway Coast & Glens (14.5%).
Mid & East Antrim also recorded the sharpest quarterly increase (5.7%), but at £676 per month, its rental average still made it one of the more affordable places to rent.
The average rent in Belfast increased to £930 per month (p/m) in the third quarter (10.4% up year-on-year), making it the most expensive place to rent, ahead of Ards & north Down (£850 p/m) and Lisburn & Castlereagh (£827 p/m).
Mid Ulster (£599 p/m) and Fermanagh & Omagh (£606 p/m) had the lowest third quarter (Q3) average.
PropertyPal’s chief operating officer, Jordan Buchanan said: “Rental market pressures remain at highly elevated levels driven by the persistent challenge of high demand and weak supply with approximately 50% fewer homes advertised for rent.”
“This ongoing chronic mismatch, alongside high inflation and income growth is leading to steady increase in rent levels.”
He said the 9.5% annual increase eqates to an additional £70 per month for the average rent.
House prices also continued to rise over the same period, but at a more modest rate.
PropertyPal said the average residential property on the resale market (excluding new builds) went for £201,800 in the third quarter, 0.6% up on the second quarter and 5.7% up year-on-year.
The Fermanagh & Omagh area witnessed the largest annual increase (9.4%), with the average property in the district rising to 172,400 in Q3.
Lisburn & Castlereagh (£237,600) and Ards & North Down (£236,800) remained the most expensive areas to buy.
Derry City & Strabane (£162,700) and Mid Ulster (£163,400) were the most affordable districts.
The average new build residential property was recorded at £234,400 in Q3.
While that still represented a 1.7% annual increase and a 0.2% quarterly increase, those rates were the lowest recorded by PropertyPal for at least six years.
The price for the average new build apartment (£202,600) actually fell 4.3% in Q3 according to PropertyPal and are 0.5% down year-on-year.
Jordan Buchanan said activity in the housing continued to soften over the last three months as economic pressures and events of the last year became more apparent.
“Newly agreed sales, a strong signal of economic confidence, fell by 15% compared to Q3 2022,” he said.
“The relatively subdued activity has been expected given the Bank of England’s ongoing monetary tightening position and heightened economic uncertainty.”
