When it comes to home rental prices, the picture across Northern Ireland has been changing rapidly in recent years. Figures from the Office for National Statistics (ONS) show that private rental accommodation has become notably less affordable since 2020. While Northern Ireland still sits among the most affordable regions in the UK for tenants, the sharp rise in rental costs compared to household incomes has made renting more challenging than just a few years ago.
Rising Costs: The Shift Since 2020
Back in 2020, the average tenant in Northern Ireland was spending just under 22% of their household income on rent. Fast forward to 2024, and that figure has jumped to 25.3%. At first glance, the difference may not seem dramatic, but for many households, an extra 3-4% of income spent on rent can mean less money available for essentials such as energy bills, food, and savings.
The rise reflects a wider UK trend, with home rental prices increasing at a faster pace than wage growth. In simple terms, rents have been climbing more quickly than people’s pay packets, leaving many renters under more financial strain than before.
How Northern Ireland Compares to the Rest of the UK
Despite the increases, Northern Ireland is still one of the most affordable regions for renters. In fact, only two regions of England were cheaper in terms of rent-to-income ratios in 2025:
North East of England – 19.8%
East Midlands – 24.4%
Everywhere else is less affordable. London stands at the extreme end, with tenants paying nearly 42% of their household income on rent.
This comparative affordability is a key factor in the housing market here. While people may feel the pressure of higher home rental prices locally, it’s important to remember that the overall situation remains significantly better than in many other parts of the UK.
What Affordable Really Means
The ONS defines affordability as spending 30% or less of household income on rent. By this measure, Northern Ireland still fits within the “affordable” bracket. However, the upward trend in costs is a concern, especially for younger renters, families on tight budgets, and those unable to transition into homeownership.
If home rental prices continue to rise more quickly than wages, Northern Ireland could move closer to the 30% threshold in the years ahead. That would represent a major shift, especially in a region long regarded as having relatively manageable housing costs compared to England, Scotland, and Wales.
Why Rental Prices Are Increasing
There are several reasons why Northern Ireland has seen a steady rise in rental prices since 2020:
Demand vs Supply
More people are renting due to affordability challenges in buying homes, while the supply of available rental properties has not grown at the same pace.
Inflation and Rising Costs for Landlords
Higher mortgage interest rates, insurance premiums, and maintenance costs have pushed landlords to increase rents.
Population Growth and Demographics
A growing population, combined with younger generations delaying homeownership, has put extra pressure on the rental market.
These factors combine to create a competitive market where renters often have fewer choices and face higher prices.
Impact on Renters and Households
For the average household, the rise in home rental prices means making difficult financial choices. A quarter of income spent on rent can leave little room for long-term savings, pensions, or investments. For families, it may mean cutting back on non-essential spending or postponing plans to buy a property of their own.
It also places additional strain on younger professionals and students in Northern Ireland’s cities, where rental demand is particularly high. Belfast, as the region’s largest urban area, has seen especially strong competition for private rentals, which has driven up local prices further.
What Renters Can Expect in the Future
While no one can predict with certainty where home rental prices will go next, current trends suggest that costs are unlikely to fall in the short term. Continued pressure on the housing market, paired with slower wage growth, could see affordability tighten further.
However, Northern Ireland does retain a comparative advantage. With London and the South East of England experiencing much steeper affordability issues, Northern Ireland may remain an attractive option for those looking for lower living costs. This could encourage inward migration, which in turn may fuel further rental demand.
Opportunities for Tenants and Landlords
For tenants, being proactive is key. Understanding the average rental costs in different parts of Northern Ireland can help households budget more effectively and choose areas that offer the best value. Meanwhile, landlords should recognise that while higher rents may boost income in the short term, long-term success often comes from fair pricing, good tenant relationships, and keeping properties in strong condition.
Mortgage advisors and housing experts also play a vital role in supporting both landlords and tenants during these shifts. Whether it’s exploring buy-to-let mortgage options, reviewing affordability, or planning a move from renting to buying, professional advice can make navigating the market much easier.
Adapting to a Changing Rental Landscape
The rise in home rental prices since 2020 highlights an important shift in Northern Ireland’s housing market. While tenants here remain in a stronger position compared to much of the UK, affordability is slowly eroding. For renters, this means keeping a close eye on budgets, and for landlords, it requires balancing profitability with long-term stability.
The coming years will likely bring more changes, but understanding the latest figures gives households and property owners a stronger foundation for making smart housing decisions.
