08 December 2009 - Investors Hold Their Breath

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Thu 26/11/2009

Letting sector showing positive signs as investors hold their breath

The letting sector in Belfast is showing positive signs with downward pressure on rents easing but investors are holding their breath for developments in property sales in spring 2010. Belvoir Lettings quarterly report on the performance of the letting sector in Belfast reveals a more robust volume of transactions than has been seen for 12 months and the average time it takes to let a property has shortened significantly to 25 days.

“The rental sector in Belfast is performing well and has proven resilient despite the recent difficulties in the residential sales sector” said Andrew Jack, Director of Belvoir Lettings in Belfast. “Activity has increased and tenants are making quicker decisions about renting properties”.

The key issues in the current letting market are quality and price, both of which are critical in ensuring properties are let quickly. “Landlords are now heeding our advice to invest in the quality of their properties to increase appeal particularly where supply of properties is still high. This is helping to reduce the downward pressure on rental values that we have seen in some areas over the last 12 months. Additionally landlords are being more realistic about rent values and this is critical in ensuring vacant periods are kept to a minimum” continued Andrew.

Buy to Let investors have suffered a torrid time in the last 2 years as the value of their properties have fallen sharply so it has been crucial to maintain rental income. The outlook for 2010 remains uncertain. The supply of available rental properties will remain high and with new developments in the Titanic Quarter starting to come on stream there is further potential for pressure on prices. Wider economic issues, particularly in the job market and in the public sector could also have a negative impact.

With property sale prices also appearing to stabilise there is a feeling that some investors are holding their breath for developments in the spring. Some will choose to offload properties however others will take the opportunity to buy properties at a reasonable price that will present the opportunity to achieve a strong rental yield. “It remains to be seen how the sector performs with so many variables in the mix, but for long term investors property letting still provides a good annual return as part of a mixed portfolio” concluded Andrew.


For further information on Belvoir Lettings Analysis of the letting market in Belfast please contact Andrew Jack, Belvoir Lettings, 028 9022 8409 or andrew.jack@belvoirlettings.com

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