02 August 2011 - Q2 2011 Trends Report • Volume of lettings up 8.6% on 2010 • ‘Time to Let’ improves to 32 days • 17 day turnaround on City Apartments • Rental Values flat compared to 2010

Analysis

Quarter 2 has again delivered strong volumes and activity
following on from the positive start to the year in
Q1. The volume of properties let in the first half of the
year is up 8.6% versus the first half of last year, reflecting
the strength of the market and our own focus
on expanding our operations. The early part of the
quarter prior to the extended Easter / May day holiday
period was particularly busy with Tenants wanting to
use the holidays for moving in. We are hopeful that
this increase in volumes will continue into Q3 which
typically is the highpoint of the year.

Time to Let figures have shown an improvement at
32 days compared to Q1 at 34 days, although this
is down from 28 days in the same period last year.
Within the numbers though there are some interesting
shifts between apartments and houses. The apartment
market was really strong with City Centre Apartments
turning round in an average of 17 days and
South Belfast Apartments in 25 days, both improved
on the previous quarter and the same period in 2010.

However TTL in the housing market has gone in the
opposite direction with South Belfast houses taking
45 days to let across the quarter, and whilst the more
popular 3 bed houses were going in 38 days this drift
in TTL has become a trend starting back in summer
2010. We have felt for a while that there has been a
shift from housing to apartment living, probably reflective
of the high quality and volume of new apartments
that have appeared in the city in the last 2 years.

There is possibly also less movement in the family
home market as families may wish more stability during
difficult economic times, whereas young professionals
may demonstrate more flexibility in reaction
to shifting around for work purposes. One positive to
note is that more modern family homes are proving
popular and that these tenants are indicating that they
are keen to agree long term leases.

Average Rental prices were particularly strong in Q1
and although they have eased in Q2 at £559 this is
marginally up compared to Q2 2010 (£555). City centre
apartment prices at £587 are well up on Q2 2010
(£541) but down on Q1 2011 (£629). The other key
market of 3 bed south houses saw prices of £574, flat
compared to Q1 (£577) but down from Q2 2010 (£636).
As with time to let figures this decline in South Belfast
housing has been ongoing for the last 4 quarters.

Recent House price indices for Northern Ireland have
again indicated that purchase prices will at best be
static with the possibility of some further declines in
some areas. Although transaction volumes are looking
up there is still much gloom in the market. On the
plus side the renewed affordability of houses does
mean yields on rental properties are excellent. As always
investors should seek advice on the potential
rental prospects of a property and we are more than
happy to discuss the market outlook in detail.

The recent warm and wet weather has meant gardens
growing rapidly and we would urge Landlords,
particularly in empty properties, to ensure that garden
maintenance is in place. Overgrown hedges and
grass always creative a negative impression with potential
Tenants who despite the strength of the market
still have plenty of options to choose from.

If you would like a full copy of the Q2 trends report please contact us at 028 9022 8409



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