Locals 'priced out' of north coast homes

Angela Mulholland believes second homes and short-term lets are to blame for a shortage of affordable places to live

A former councillor said she feels "saddened" that she has been priced out of her hometown on the north coast.

Angela Mulholland said rental costs and places to buy in Portstewart, County Londonderry, are now out of her budget.

She left the property she was renting in the town earlier this month and moved to Coleraine.

"Coastal areas have really become the playground for wealthier and more affluent people," she said.

"Homes are being used as second homes, holiday homes, places to escape to at the weekend.

"The housing stock has diminished as a result of that, so there is very little to choose from if you are looking to rent... long term."

Ms Mulholland said that in her previous role as a councillor she helped "a lot of people" find accommodation in Portstewart.

"These were families that would have to take their children to a different school because they could no longer stay in the places where they wanted to stay, where their families were, where they had a support network."

Ulster University's Prof Paddy Gray believes councils in Northern Ireland should be given more powers over housing

Other parts of the UK have introduced measures to tackle similar issues.

Authorities in Cornwall have increased council tax for properties that are second homes.

New rules were also introduced by the Welsh government in April 2023 which it said would make it easier for people to afford homes where they grew up.

It gave powers to local authorities to charge up to an extra 300% on top of normal council tax for second home owners.

Paddy Gray, professor emeritus of housing at Ulster University, said these measures must be balanced.

"Some people would argue that's not the way to do it because people will then sell their properties.

"If they come into the local arena and people buy them that are local, that's great but maybe other investors will buy them and push prices up further."

He believes councils in Northern Ireland should be given more powers.

"They would be able to assess the situation and… maybe restrict the numbers in those areas."

In 2023, Causeway Coast and Glens Borough Council asked the Department for Infrastructure to change planning laws to help control the number of holiday homes.

It followed a report that said the issue is "unregulated and difficult to control".

It estimated 23% of properties in Portstewart, up to half of the homes in Portballintrae and 31% of houses in Cushendun were second homes.

The local authority wanted homeowners to get planning permission before changing a property from a permanent dwelling to a second home.

The Department for Infrastructure (DfI) said then there was no plan to legislate for further regulation.

In a statement on Friday, a spokesperson for the DfI said: "This policy area remains under review."

"Councils are also responsible for determining all planning applications for housing development in their areas," they added.

"Relevant provisions within the Department's regional policy and guidance, such as the SPPS and Planning Policy Statement 7: Quality Residential Environments must be taken into account by planning authorities in plan-making and decision-taking."

Property Pal figures show the average monthly rent in Portstewart in 2024 was £833

Jordan Buchanan, chief executive at PropertyPal, said average rents in Causeway Coast and Glens have risen by 34% since 2020.

He said average rent in the council area has "risen to £725 per month" which is "£50 more than last year".

Mr Buchanan said it aligns closely with the Northern Ireland average increase of 36% but far outpaces overall inflation.

He said it highlights "the growing unaffordability of renting".

Mr Buchanan said rents in Portrush, Dunluce and Portstewart have surged since 2020 due to more people wanting non-traditional rentals like short term and holiday lets.

"The increasing cost of renting is likely to limit further sharp rent rises, particularly as inflation stabilises and mortgage rates improve.

"Strong labour market conditions, wage growth, limited private sector investment, and a severe shortage of new private housing continue to drive rental prices upward."

Mr Buchanan said in order to tackle the problem "it is vital policymakers focus on increasing the supply of social, affordable, and private housing".

In December the Department for Communities announced its Housing Supply Strategy in response to housing pressures across Northern Ireland.

The department said 100,000 new homes needed to be built by 2039 and one third - about 33,000 - of those will be social homes.