East Belfast Sectoral Study - Northern Ireland Housing Executive

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the growing interest in buy to let during this period. There are early indications from the 2006 House Condition Survey that the rate of growth has continued to accelerate, particularly in urban areas and provincial towns. Approximately 74,000 dwellings or 11% of the total Northern Ireland housing stock is now privately rented. Current trends would suggest that private rental will overtake social housing within the next 5-7 years. The rapid growth and strategic importance of the private rented sector led the Housing Executive and the Department for Social Development to produce a strategy to promote the sector and improve the quality of accommodation and its management. The strategy, “Renting Privately: A Strategic Framework”, was published in May 2004. The strategy has 6 core objectives, these are:- • To create a legislative structure for the sector which addresses inequities and targets unfitness through repair enforcement and rent control? • To clarify and promote the rights and responsibilities of private rented sector landlords and tenants. • To improve housing conditions in the private rented sector. • To facilitate housing choice, by promoting the private rented sector as a viable and affordable housing option. • To influence the levels of supply of accommodation available for private renting. • To promote high standards of management within the private rented sector. Progress in implementing the strategy has been made in a number of ways, most notably the publication of the draft Private Tenancies (N.I.) Order to be introduced in April 2007. This Order will target unfitness in the sector and also provides clarification on the roles and responsibilities of landlords and tenants in relation to rents and repairs. The Housing Executive has commissioned further research into the Private Rented Sector which will examine the housing choices exercised by those living in the sector and their longer term intentions. Underpinning this research is a realisation that its popularity is related to ease of access with no lengthy list in areas of high demand, and also its desirable location and proximity to centres of education and employment, factors which are particularly relevant in East Belfast. There is some concern that the character of some areas and estates is being changed by the spread of Buy to Let. This is often seen as having a negative impact on those areas. Houses in Multiple Occupation (HMOs) are an important element of the private rented sector. They are defined as houses occupied by persons who do not form a single household. The most recent figures from the 2004 House Condition Survey suggest that there are more than 14,000 HMOs in Northern Ireland, roughly one fifth of the entire sector. HMOs have an important role to play in meeting the needs of people who are single, who have temporary employment, students and those on low incomes. More recently HMOs have become home to a large number of migrant workers who have 24
come to Northern Ireland since 2004. The Housing Executive aims to improve management standards in HMOs with a rolling programme of inspection, enforcement and grant aid. Due to the recent level of investor purchasers the supply of private rental property is seen to be high in East Belfast, with good choice for tenants. The market is dominated by landlords who operate on a small scale,(over 70% of landlords had 5 properties or less) and who have entered the sector within the last 5 years ie since 2001. Average rents for terrace property are £450-500 per month with larger properties attracting higher levels. It is widely accepted that investors are not covering return through rental income and that they are reliant upon capital gain to achieve an overall high rate of return. Terrace property in East Belfast increased in value by around £2500-3000 per month throughout 2006, providing confirmation that “Buy to Let” was a very attractive investment in the current climate. In terms of location, it is felt that Cregagh will become a more popular rental area and an extension of the South Belfast market in a rippling out effect from the Ormeau- Ravenhill areas. 25
Page 2 and 3: TABLE OF CONTENTS 1.0 Introduction
Page 5 and 6: 2.0 Strategic Context 2.1 Backgroun
Page 7: exacerbating land and property pric
Page 10 and 11: interface around Short Strand/Bally
Page 12 and 13: proposals to create a network of Qu
Page 14 and 15: Knock and Orangefield Wards have th
Page 16 and 17: environment and crime and crime and
Page 18 and 19: area, 1653 in the Belfast City port
Page 20 and 21: years. The current affordability cr
Page 22 and 23: Most areas are experiencing increas
Page 26 and 27: 5.0 Private Sector Market Perspecti
Page 28 and 29: Property Type Average Price 2005 Qu
Page 30 and 31: continue in the longer term, the fa
Page 32 and 33: 32 July 2006
Page 34 and 35: 1. Introduction and approach to the
Page 36 and 37: changes to the education system in
Page 38 and 39: significant in the re-branding of S
Page 40 and 41: though one major agent with an exte
Page 42 and 43: that the current price thresholds f
Page 44 and 45: scheme. The scheme is attracting yo
Page 46 and 47: sector for at least the short-term.
Page 48 and 49: 8. Relationship of East Belfast mar
Page 50 and 51: 10. Conclusions 10.1 The overall co
Page 52 and 53: demand and keeping rental levels do
Page 54 and 55: Appendix 2 Northern Ireland Housing

East Belfast Sectoral Study - Northern Ireland Housing Executive

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