The number of new homes in Northern Ireland has soared. Our country currently boasts the highest percentage increase in newly built houses throughout the whole of the UK.
If you’re thinking about becoming a landlord for the first time or considering an expansion of your portfolio, then now may just be the right time to invest.
According to the latest quarterly statistics from the National House Building Council (NHBC), NI’s number of new homes has increased by a staggering 44% compared to the same quarterly figure this time last year (2014).
This is a considerably larger figure than other UK regions, with only a 1% increase in new homes built in England. As for Scotland and Wales… their figures have actually dropped with decreases of 15% and 18% respectively!
With nearly 1000 homes built in the last three months, there are good opportunities for considering whether to either invest for the first time, or expand your property portfolio.
Meeting the demands
One reason for this large percentage increase is the demand for new homes due to confidence within the industry that the effects from years of recession are finally starting to lessen. However, the demand is so large that, despite the resurgence of new houses being built, the number is still short of where it needs to be. One reason is the 9.3% increase in renting nationally in the Irish Republic with workers from Dublin actively seeking new properties to rent in Northern Ireland.
The building of new properties looks set to continue increasing in volume. As such, buying a brand new house or apartment is highly likely to be on many investors’ agendas next year as it is clear there is no shortage of tenants looking for new homes to rent.
Learn about your locations
Despite the genuine need for people to live in new homes, and the requirement for landlords to provide them in an acceptable liveable standard, there are crucial factors any landlord should consider before diving into property investment. Knowing the desirability of the location and likely rental yield of any potential property is vital.
Dublin is a thriving city with many opportunities for students and professionals alike, ensuring a continuous letting market for landlords. . However, the average rent of these properties is often too high to generate a high number of interested candidates.
This is why Propertypal.com has reported that people from the Republic are inquiring about rental properties in towns in the Northern border, and that this has increased by nearly 500% in the last year.
The Newry based estate agents Cormac Gough claim that around 2000 workers from the Republic are currently renting accommodation in Newry, which equates to about 20% of their tenancies
For example, the average monthly rent of a two-bedroom home in Newry is around £600 whereas a property in Dublin, an hour’s drive away with similar size and specifications, will cost a tenant approximately £1250 a month.
This demonstrates that, if you pick the right property and do your research first, towns near the border, like Newry, arguably have potential for prosperity among veteran and first-time landlords alike.
It’s important to remember that a property in Dublin will cost you more to acquire and possibly maintain, so it also depends largely on your financial situation when looking to invest.
A home for all
Everyone needs and deserves a home, so the increase in house building due to the ever increasing demand can only be positive not only for the general public, but for our economy and wise investors as well.
With schemes available to look after security deposits and offer guidance on how to maintain a professional tenancy agreement, there’s plenty of advice on offer to help those interested in investing in the Northern Irish property market.
Find out more about Insurance and Custodial deposit protection today with our online tutorials.