East Belfast Sectoral Study - Northern Ireland Housing Executive

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scheme. The scheme is attracting young professional purchasers and potentially changing the character of the area with the potential to re-develop other sites in the vicinity (eg the Oval). Other new build schemes referred to included various apartment developments on the Upper Newtownards Road, Sydenham – apartments and townhouses, Orminston Square (Belmont Road) 3 storey townhouses, Templemore Avenue, the former Dale Farm premises on Montgomery Road; Elmgrove on Beersbridge Road. These schemes were seen to have the potential of contributing to regeneration goals and changing the character of areas with the influx of new purchasers. However, some agents took a contrary perspective and discounted the level of new build activity as not being of sufficient magnitude to impact on the market and meeting first-time buyer requirements. 5.6 Planning issues were not seen as a big concern and often did not impinge on the activities of estate agents whose main involvement is later in the process after planning permission is granted. One agent considered that “delays were accepted and simply built-into the equation” and another considered the “planning process to be long and restrictive”. There was variable evidence on infill sites with one agent suggesting that density rules have been abandoned as planning for such schemes seems to be getting approved regardless. However, another agent was of the opinion that planning policy is making infill developments more difficult with so many consultations with Roads Service and other agencies increasing the hurdles to get planning permission. 5.7 There was considered to be little scope for peripheral expansion in East Belfast apart from within Dundonald. The lack of land release was identified. One agent considered that the greenfield/brownfield debate needed re-opening and another agent identified the possibly of development on the green belt at Glenmachan. Concern was also expressed that most of the major sites within the urban footprint have been used, with Garnerville when released the last substantial site, thereby potentially limiting future opportunities. The steep uplift in property price was seen to be causing big problems for developers in terms of bidding for land and pricing/timing of new build releases. 5.8 Most agents viewed Titanic Quarter and the proposed development of Odyssey Village in a positive manner with the potential for spin-off effects and raising the profile of the East Belfast market. Indeed it was suggested that this was already happening with schemes such as Lewis Square development in Sydenham (Mersey Street) providing new homes in formerly difficult inner-city locations where the property market would previously have been very subdued. However, Titanic Quarter was considered to have little or no impact on the wider East Belfast market. Several agents considered that Titanic Quarter was perceived to be a separate market and one more related to the city centre than East Belfast. There was a feeling that Titanic Quarter needs to be made attractive to the first-time buyer with a need to get people living there with one agent considering there was not a need for more apartments but a better mix of housing. 5.9 Ex-Housing Executive properties are seen to be performing an important role in re-cycling property in the second-hand market with some very sought after 44
property in Edenvale (Belmont Road). There was a feeling that the stigma that may have been associated with public sector housing estates has largely disappeared. Several agents indicated that resale activity of ex-Housing Executive properties was considered to be a growing aspect of the market, a buoyant sector and had added to the level of owner-occupation. Although locations such as Ballybeen and Tullycarnet have experienced significant price growth recently, these properties are seen to have first-time buyer appeal. The changing character of estates, which were seen to be becoming increasingly owner occupier, was seen as a bonus and has contributed to raising the profile of East Belfast. The price gap between ex-Housing Executive properties and the private market was seen to have narrowed. 6. Impact of buy-to-let/investment market 6.1 It is considered that the investor market has raised demand in East Belfast with the increased competition leading to higher than anticipated price levels and eating into the stock on the market as investors are holding property in the expectation of capital growth. This has had implications for the supply-side and the dynamic of the housing market in terms of the number of properties coming back on the market. Most agents acknowledged that growth in the buy-to-let market was impacting upon the home-ownership sector though it was stressed that this was not of the magnitude that exists in South Belfast. 6.2 The main impact on the home-ownership market has been focussed on first-time buyers with competition between investors and purchasers most intense in the terraced house market. This has led to first-time buyers either being overstretched in terms of prices paid or being out-bid. Investor activity was also perceived to be strong in the new build sector due to the practice that subsequent releases of schemes tend to command higher prices. 6.3 Demand for private rental property in East Belfast is considered to be average, though a growing market. Reflecting the potential for growth in private rentals it is significant that a number of the estate agency practices that participated in the interview had recently started to diversify into the rental sector, suggesting a market niche. Some agents were reporting more rental properties on their books than properties for sale emphasising the type of market imbalance that is currently characterising the East Belfast market. 6.4 Demand was seen to be from a number of sources. The housing benefit, DHSS tenant, was an important component of the market particularly for ex-Housing Executive properties. The increasing number of divorces and household dissolutions was seen as a factor helping the rental market where one or other if not both parties may be looking for short-term accommodation (one or two years) before re-purchasing and having the desire to remain living within East Belfast. One agent also indicated that due to debt accumulation some homeowners were selling their properties to obtain capital and moving to the rental 45
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 24 and 25: the growing interest in buy to let
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 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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