Cost of house rentals continue to rise

The Belfast area has seen the largest annual rise, with the average rent now £1,027 per month

The cost of renting a home in Northern Ireland has risen by 10% in the last year, according to data from PropertyPal.

Average rent in Northern Ireland is £891 per month, but prices can vary depending on the location.

The Belfast area has seen the largest annual increase, with the average rent now £1,027 per month.

The property website says each advertised rental property had an average of 73 enquiries over the past 3 months.

'Low levels' of rental supply

PropertyPal Chief Executive Officer Jordan Buchanan said pressure on affordability is because rental supply remains at "historically low" levels.

He said: "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.

"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.”

In terms of property sales, he said improved market conditions have been driven by lower mortgage rates.

The average property price (excluding new homes) is £212,400, which is a 5.3% increase in the last year.

New homes are more expensive, with an average property price of £245,500, an increase of 4.8% in 12 months.

Price growth varies by area, with the Derry City & Strabane area seeing the largest annual increase in house prices.

The average property price there is now £179,600.

Mr Buchanan said this upward trend is expected to continue and potentially accelerate if mortgage rates continue to decline.

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."

"The upcoming UK Budget later this month will be closely watched, with speculation around potential measures to address housing supply barriers but also tax-related issues," he added.