Population growth and rising rates of residential rental are driving property price increases in Northern Ireland; the country is expecting a 3.04% average price increase by 2021.
This is the 11th highest increase across 12 UK regions, but an increased demand for housing is still expected to create growth in the residential housing market over the next three to five years.
Predicted Property Hotspots
Northern Ireland has the smallest population of the four regions of the United Kingdom, and offers stunning landscapes and coastal communities alongside the thriving city life on offer in Belfast.
The largest upwards increase in average house prices is expected to occur in the following areas:
- Lisburn & Castlereagh
- Ards & North Down
In Lisburn & Castlereagh the population is expected to experience one of the highest levels of short to medium term increases in the country, growing by 4.8% in the next five years, fuelling demand for housing in the area and driving prices up.
Linked to this, both Ards & North Down and Belfast have experienced a strong rate of growth in residential property rental, indicating a high demand for housing which in turn will push up house prices. Lisburn & Castlereagh has experienced a steady rate of recent house price increases, with growth of about 24% between 2011 and 2015, reflecting increased demand for housing in the area.
Another indicator that house prices are set to rise is consistent and growing employment rates. Belfast is expected to experience one of the highest levels of short to medium term employment growth (1%) in Northern Ireland over the 2017-2021 period, which will fuel additional demand for housing in the area. Ards & North Down has one of the highest current employment rates of any local authority area in Northern Ireland (74.2%), meaning that average household incomes in the area are particularly strong, which also puts demand on housing.
The Barclays UK Property Predictor reveals the areas across the UK where house prices and rental incomes are expected to rise. The research uses factors such as rental trends, employment levels and commuter behaviours, as well as a survey of high net worth individuals to understand where and why they plan to buy in the future.
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