Average monthly rents in Northern Ireland have climbed by 10% in the last year while supply remains at “historically low levels”, a report has found.
According to a recent report by property platform PropertyPal, the average monthly rent in NI at the end of September was £891.
After a 10.5% annual increase Belfast is the most expensive place to rent in NI, with average rents topping £1,027 per month.
Fermanagh and Omagh is currently the cheapest place to rent, after rents increased by 2.9% to £623 per month.
Jordan Buchanan, chief executive of PropertyPal, said: “Rents in Northern Ireland continue to rise, with double-digit annual growth of 10%, pushing the average rent to £890 per month and intensifying pressures on rental affordability.
“Demand remains exceptionally high, with an average of 73 enquiries sent to estate agents for each advertised rental property.
“In contrast, supply remains at historically low levels. 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 comparison house prices, excluding new builds, saw a 5.3% annual increase to an average of £212,400.
After a 4.8% annual increase and a 2.2% quarterly increase, the average price of a new build is £245,500.
The report found Ards and North Down was the most expensive area to buy in with average prices at £254,100.
In contrast, Fermanagh and Omagh is the cheapest place to buy with an average price of £172,100, down slightly in the last year.
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Mr Buchanan said that property sales experienced a strong rebound growing by 14% in the last year, adding that enquiries to estate agents had also increased by 15% and 6%.
He added: “Lower mortgage rates are a key driver of these improved market conditions, with expectations of further rate reductions in the coming months.
“In fact, recent data from the Bank of England reveals that UK-wide mortgage approvals have reached their highest level in two years. House prices are also rising in response, with the average property price now 5.3% higher than a year ago.
“This upward trend is expected to persist, and potentially accelerate, if mortgage rates continue to decline.
“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.”