East Belfast Sectoral Study - Northern Ireland Housing Executive

2. General perceptions on how the housing market is operating in East
Belfast.
2.1 The over-riding consensus of opinion is that East Belfast is currently
experiencing unprecedented rates of house price growth. The market is
perceived to be extremely hot with very high levels of demand. It was observed
that sale prices were regularly 10 to 15% over the asking price. The rate of
growth was considered to be exceptional with everything selling that is coming
on the market. Several agents indicated that properties are frequently selling
within days of being listed. Both the home-ownership and investor markets were
seen as being strong with investors often out-bidding the home-owner. The
overall picture is currently one of high price levels and high rates of growth.
Price levels and rates of growth are elaborated upon in Section 3 of this report.
2.2 The current market is perceived to be driven by two main influences the role of
investors and strong first-time buyer activity. The terraced market is identified
as being particularly active with the perception of being investment driven. The
first-time buyer market was considered to be a key factor with a scramble to get
into the housing market. The perception prevailed that the market has never
been stronger with a combination of home-owners and investors. To quote one
agent “ we haven’t seen a market like this for six or seven years”.
2.3 There was considered to be a changing character to the East Belfast market with
new investments, new jobs and new people moving into the area coupled with a
marked decline in past sectarian tensions and paramilitary emblems.
Gentrification was seen to be taking place. According to one agent as the
shopping facilities in Belmont change, with more upmarket coffee shops and
eateries/winebars appearing “it is no longer Strandtown but Belmont Village”.
East Belfast was perceived to have become a very popular location attracting
purchasers from both sides of the religious community in Northern Ireland and
has become the alternative for those priced out of the South Belfast market.
According to one agent “BT 9 is moving towards BT 4, 5 and 6”. The overall
perception is that the East Belfast market is having wider appeal and attracting
an influx of purchasers. East Belfast was seen to have a mixed community
which was helping the health of the housing market. Migrant workers were also
a feature of the rental market (see para 6.4).
2.4 A consequence of the changing character of East Belfast has been a new mix of
buyer in the market across locations such as Cregagh, Bloomfield, Sydenham.
The market is considered to be very competitive with purchasers needing to be
businesslike and aggressive in order to secure the best price. Due to the steeply
rising market, one agent considered that gazumping was taking place
particularly if there was an element of delay with the first agreement to sell.
Another agent referred to time taken by solicitors as not keeping pace with
market activity. Co-ownership purchasers were seen to be at a disadvantage in
such a feverish market (this is developed further in 4.12).
2.5 Perceived attractions of the East Belfast market include several high quality
schools at both primary and secondary (grammar) level. With the proposed
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