Northern Ireland budget cuts and their affect on the private rental sector.

 Stormont’s proposed budget for 2015/6 cuts the DSD (Department for Social Development) budget by £75.3m, which means that the delivery target for new social homes will be cut from 2,000 to 1,500 this year.

The N I Housing Executive (NIHE) budget will be reduced by 10.7% and cuts to the co-ownership housing grant will reduce the number of homes from 700 to approximately 300.

In addition to the budget cuts, statistics show that new housing construction in Northern Ireland has fallen by 12.4% from quarter two last year to quarter two this year, with housing construction falling by 1.7% from the 1st to 2nd quarters of 2014.

All of this will put increasing pressure on the private rental sector, which is already experiencing a shortage of good quality properties to rent. The pension reforms which come into law in April 2015, will enable people approaching retirement and pensioners to access as much or as little as they want from their pension pots. This will hopefully create a new generation of property investors, dubbed the ’silver landlords’, who will look to the rental market for safe investment returns in 2015.

If you have already done a search for a property, or are trying to figure out where to start, we’re happy to advise on properties before you buy, whether you are a Belvoir landlord or not.

For more information, please contact Jackie in Bangor, (028 91 477 999), or Trevor in Newtownards, (028 91 821 999).