THE average cost of renting a house in the north has jumped by 9.1 per cent in a year, with one economist predicting landlords will soon pass on the recent hikes in mortgage rates onto tenants.
New housing market analysis by PropertyPal found the average rent of a residential property reached £742 per month in the third quarter (Q3) of 2022, which was 2.5 per cent up over the quarter and 7.8 per cent up over the year.
The listings website said the average rental property attracted 80 enquiries in Q3, four times above pre-Covid rates.
That demand, coupled with a sharp rise in house prices, saw the average rent for a house hit £743 per month, 9.1 per cent up on the same period in 2021.
Rent for apartments increased by 5.3 per cent over the same period to £741 per month.
PropertyPal’s chief economist, Jordan Buchanan, said the sharp rise in mortgage rates in recent weeks could place even more pressure on the local rental market, with aspiring homebuyers forced to stay in rental properties for longer.
“Furthermore, approximately half of landlords in Northern Ireland have at least one mortgaged property and they may be forced to pass on higher mortgage repayments through higher rents, adding to the existing pressure facing tenants,” said the economist.
“The outlook for the rental sector is concerning, particularly with a significant proportion of rental stock amongst the least well insulated as we move into the winter period with higher energy bills.”
PropertyPal said the average house sold via the website in Q3 2022 hit £193,400, that was 7.2 per cent up over the year and well above the official Northern Ireland house price average of £169,063.
But it found the price of new builds rocketed by 17.9 per cent in just 12 months, with the average new house selling for £228,900 in Q3.
The market trends report found apartments were selling for £145,200 on average during Q3, up 6.5 per cent on last year.
PropertyPal detected the sharpest annual increase in Causeway Coast and Glens, with prices up 9.8 per cent to £201,500 on average. That was just ahead of Newry, Mourne and Down, where prices jumped 9.1 per cent to £197,100.
Ards and North Down was most expensive (£227,700) with Derry and Strabane the cheapest on average (£156,800).
PropertyPal recorded the highest number of sales in Belfast, with Botanic, Titanic, Castle, Lisnasharragh and Ormiston in the top five selling locations - accumulating 922 sales in Q3.
The website said a typical property takes on average 43 days to reach sale agreed, one day more than the equivalent period last year.
