Tenants facing sharp rise in rental costs

RENT costs across the county have soared in the last year, with two-thirds of people in the North believing that local leases have become ‘too expensive’.

In Fermanagh and Omagh, rent rates are up 7.5 per-cent in the last 12 months, while neighbouring Derry and Strabane has seen an even larger leap of 10.2 per-cent.

Mid-Ulster has experienced a comparatively low increase of 5.4 per-cent, but one that has nevertheless taken some bill-payers beyond their monthly budget.

However, while the property price picture is stark for tenants across Tyrone, with dwellings costing an average of £633 per month, those numbers are even higher in other areas, including Belfast (£952), Ards and North Down (£878), Lisburn and Castlereagh (£843) and Newry, Mourne and Down (£720).

The majority of those surveyed (68 per-cent) in the CompareNI study said they believe rent in the region is ‘too expensive’.

Furthermore, with costs becoming unmanageable for many, the survey found that one-in-five renters in the North have had to borrow money or forego essentials like food or heating in order to pay their landlord.

When asked if they thought there were enough rental properties available, 70 per-cent of respondents stated they believed there was a shortage, an intuition which was substantiated by recent data that showed market supply was down by eight per-cent on the last quarter of 2022, while market demand was up 30 per-cent during the same time frame.

Casting an analytical eye over these figures for the Tyrone Herald, Connor McCann from OmaRentals, said his daily experience as a property manager was commensurate with the survey’s findings.

“Rental prices in Omagh and, indeed, Tyrone, have increased, as have rents in all areas of the UK and Ireland. This is due to a rise in landlord expenditure, including property rates, insurance, repair costs and interest rates.

“The rental market, like all sectors, is being hit by increased inflation and the ‘cost-of-living’ crisis.”

DEMAND

Mr McCann then remarked on the heavy demand that exists across the local rental market.

“Northern Ireland’s shortage of rental properties has been caused by a culmination of many factors, including an overall housing shortage, increased house prices which puts home ownership beyond the reach of many young people who then turn to the rental market for a home, and existing tenants remaining in rentals for longer periods”

These factors come together to result in massive competition, Mr McCann explained.

“For every rental property we market via our virtual lettings platform, we are getting on average 45 enquiries per property.

“Properties are being snapped up very quickly since we have digitalised the lettings process, and moved it online with the vast majority of enquiries coming through our lettings platform within 48 hours.

“We certainly could do with a lot more properties as only one tenant can be successful, which can be very frustrating for the remaining applicants.”

Despite the generally dismal state of the local rental market, Mr McCann said local people have more reason to be positive than most.

“The one good thing is that rents here in Omagh and Tyrone are among the lowest in all of the UK and Ireland, with rents averaging £1,200 per calendar month (pcm) in the UK and €1,300 pcm in Ireland.”