Rental property has become 'less affordable since 2020'

Northern Ireland still remains one of the most affordable UK regions for renters

Private rental accommodation in Northern Ireland has become less affordable since 2020, new analysis from the Office for National Statistics (ONS) suggests.

However, Northern Ireland still remains one of the most affordable UK regions for renters.

The ONS study looks at what proportion of a typical household income is required for the rent on an average property.

In 2020 it was just under 22% but by 2024 it had risen to 25.3%, as rents increased more rapidly than pay in that period.

The ONS defines an area as "affordable" if a private-renting household would spend the equivalent of 30% or less of their income on rent.

Two regions of the UK were more affordable than NI in 2024: the North East of England with a rent-to-income ratio of 19.8% and the East Midlands with 24.4%.

All other English regions were less affordable with London's ratio at almost 42%.

Jordan Buchanan, from PropertyPal says "headline rents are likely to continue rising" but expects "the pace of growth to moderate over the remainder of the year"

On a longer term basis affordability in Northern Ireland has been essentially flat since 2016 when the rent-to-income ratio was 25.6%.

A more recent analysis by the PropertyPal website suggests rents have been continuing to rise in NI this year.

Data from PropertyPal listings suggest that the average residential property in NI was renting for £976 in the second quarter of this year, up nearly 8% on the same period in 2024.

Jordan Buchanan, Chief Executive at PropertyPal said: "While headline rents are likely to continue rising, we expect the pace of growth to moderate over the remainder of the year."