Increased rentals keeping prices up

Published Thursday, 02 February 2012
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With more people struggling to get on the property market, rentals are becoming a more popular option - which is keeping prices up, despite pressure from cash-strapped would-be tenants.

Increased rentals keeping prices up
More people are turning to the rental market, but are hunting for cheap deals. (© Citylets)

According to a Citylets report, average private rents in Belfast City and Greater Belfast are about £570 per month - which is actually up by about 2% on the year.

But higher rental value properties are taking longer to let, putting pressure on landlords to drop their prices if they need to secure a tenant quickly.

Almost half of all one-bedroom properties are being let within a month of being advertised, according to the research - 14% of those within just a week.

At the other end of the scale, only 17% of four-bedroom properties are let within a month.

"Belfast's private rental market has found support in recent years from potential first-time buyers unable to get hold of mortgage finance or a deposit big enough to secure their own place," analyst Dan Cookson said.

"Although this remains a supportive factor, it's clear that tenants are more worried about their finances than they were before."

He added: "Like most people, tenants are starting to shop around to see if there's better value out there - unfortunately, this means that those landlords seeking premium rents for larger, more luxurious properties in the best areas are finding it tougher to secure a tenant quickly."

According to the reports figures for December, the average rental cost of a one-bedroom property in Belfast was around £500 a month, going up to £520 for a two-bedroom home.

Three and four-bedroom properties cost around £590 and £700 per month respectively.

© UTV News
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3 Comments
Dave in Belfast wrote (111 days ago):
Look up the Citylets report. The "2 % increase" is somewhat cherry-picked.
subby HPC in Belfast wrote (112 days ago):
You can rent a large property for a fraction of the monthly price it would cost you to buy one...no brainer. Also lets you give it up if you want to move to find work without having to worry about selling. You can get longer contracts now not just 1 year if you find the right landlord. Renting will become the norm, just as it is in Europe and owning a house will be regarded as part of a landlords job.
Tony in Belfast wrote (113 days ago):
How many land lords are declaring the correct taxable income on their rental profits? Workers get hit hard by the PAYE system it’s about time all rental is regulated through a central government rental system collecting tax payer’s revenue.
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