Demand for housing in the north drove rent prices up by a further 2.3% in the last quarter to an average of £894 per month, new analysis from PropertyPal suggests.
The property listing website said rental costs for houses increased by 10.3% in the space of a year in Northern Ireland, with apartments up 9.3% over the year and 1.8% over the third quarter to an average of £885 per month (p/m).
It left the overall average residential property rent at £891 p/m for the third quarter of 2024.
PropertyPal said estate agents are receiving an average of 73 enquiries for every rental property advertised.
Belfast remains the most expensive place to rent, with costs rising another 2% in the July to September period, to an average of £1,027 – 10.5% higher than the third quarter of 2023.
Rent has also increased by 10% year-on-year in Ards & North Down (£937 p/m) and Lisburn & Castlereagh (£910 p/m), leaving those districts the two most expensive to rent in after Belfast.
Fermanagh & Omagh was the most affordable place to rent, with prices rising by just 2.9% over the year to £623 p/m, just below Mid Ulster on £654 p/m.
However, rent in Mid Ulster has increased by 9.2% since last year and rose 3.3% in the third quarter alone, the steepest quarterly rise of the north’s 11 districts.
Mid & East Antrim was the only place where rental prices have started to fall, dropping by 0.5% in the last quarter. But rent costs in the district remained 9.4% up on last year.
PropertyPal’s chief executive Jordan Buchanan said demand for housing remains “exceptionally high” in the north, “intensifying pressures on rental affordability”.
“In contrast, supply remains at historically low levels. It is vital that both the national government, in the upcoming Budget, and the local Executive recognise the increasing pressures in the private rental market,” he said.
“To alleviate these persistent and growing challenges, efforts must focus on removing barriers to housing supply while providing incentives to boost investment in the private rented sector.”
Meanwhile, the average price of a house increased by 2.6% in the third quarter to £212,400, according to PropertyPal.
The price average, which excludes new builds, is now up 5.3% over the year.
PopertyPal said the average house on the market was listed at £218,600 in the third quarter, with apartments averaging £152,800.
Jordan Buchanan said lower mortgage rates contributed to a 14% increase in house sales over the past year.
“Visitors to PropertyPal and enquiries to estate agents have also increased by 15% and 6%, respectively, indicating continued pent-up demand for the remainder of 2024,” he said.
“While low housing supply has been a persistent challenge restraining the market in recent years, there are early signs of modest improvement, with new listings for sale up 5% compared to last year.”
PropertyPal said the average price of a new build home increased by 2.2% in the third quarter to £245,500, which was 4.8% up over the year.
