Belfast Property Taking Longer To Let

Money woes and job fears are driving stiff competition for cheaper property rentals across Belfast, leaving pricier properties on the market for longer, research published today reveals.

The latest quarterly report by Citylets, Northern Ireland’s largest dedicated online lettings site, confirms that the household spending squeeze is starting to affect the private rented sector, where cost-conscious tenants are now fighting it out to rent properties that will least impact their take-home pay.

Almost half of all one-bedroom properties are now let within a month of being advertised – 14% of these within a week, according to the research. At the other end of the scale, only 17% of four-bedroom properties are let within a month.

The report says that this uptake is keeping average private rents in Belfast City and Greater Belfast at around £570 per month, which is up around 2% on the year. In contrast, it said higher rental value properties are taking longer to let and that this is creating a downward pressure on prices.

In previous years, landlords were achieving considerable uplifts in rent when contracts were renewed, but the rate of increase has all but halted as landlords respond to tenant sensitivity to cost and job security.

Citylets’ analyst Dan Cookson, who compiled the report, said: "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 get secure their own place.

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

"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 report, at the end of December, the average cost of a one-bedroom property in the city was around £500 a month, going up to £520 for a popular two-bedroom home. Three and four-bedroom properties cost around £590 and £700 respectively.

Commenting on the report, Barry Corscaden, Managing Director of PropertyLinkNI.com, agreed with the findings.

"We’ve also seen a healthy number of new properties coming on to the market over the last quarter, with a steady stream of tenants following suit," he said. "However, ‘value for money’ and ‘fuel economy’ feature very strongly on tenant wish lists these days."

(GK)