Northern Ireland becomes rental hotspot for landlords

Northern Ireland is emerging as a rental investment hotspot for landlords, according to new research.

Research by John Minnis estate agents suggests that, as landlords in England continue to exit the market, Northern Ireland is seeing strong rental demand and growing investor interest.

The news comes as Propertymark backs stronger landlord register rules in Northern Ireland.

Long-term tenant retention

Despite landlords across England planning to sell, research suggests that 31% intend to reduce the size of their portfolios over the coming years.

However, according to John Minnis estate agents, Northern Ireland has seen rents increase by approximately 51% over the past five years, while tenant enquiries have risen by 33%.

The analysis also indicates that four of the five fastest-growing housing markets in the UK are located in Northern Ireland.

The data further points to a growing trend towards “rental wellness”, homes designed to encourage longer tenancies. Belfast, Derry, Newry, Lisburn and Bangor have emerged as Northern Ireland’s leading Rental Wellness hotspots for long-term tenant retention and landlord investment.

Beneficial for landlords and tenants

John Minnis, founder of John Minnis estate agents, said: “We’re seeing a noticeable shift in what tenants are looking for from a rental property. While location and affordability remain important, renters are increasingly considering the overall quality of life a home can offer.

“As housing costs continue to rise across the UK, tenants are also placing greater importance on stability. Many people are looking for homes where they can see themselves staying for several years rather than just their next tenancy term.

“Our Rental Wellness research reflects this changing mindset. Properties that provide a better overall living experience often attract longer-term tenants, which is beneficial not only for renters seeking security and wellbeing, but also for landlords through reduced void periods, lower turnover costs and more consistent rental income.

“Ultimately, the strongest-performing rental properties are increasingly those that people are happy to call home for the long term.”

Affordable rent programme

The news comes as the Northern Ireland Executive has announced its first-ever affordable rent programme for lower-income households.

Under the scheme, homes will be offered at rents set 20% below local market rates, helping people struggling with the cost of private renting and those saving towards home ownership.

Eligibility will be based on household income, with a net income threshold of up to £30,000 for single-adult households and up to £40,000 for two-adult households.