As a result, Northern Ireland has now become one of the most affordable regions to rent in the UK. New data indicates that the cycle of American renters’ fortunes may soon turn. An Office for National Statistics (ONS) analysis shows how dramatically Northern Ireland’s rent-to-income ratio has changed. It increased from just under 22% in 2020 to 25.3% by 2024. This transition is indicative of a historic surge in rental expenses. Yet these expenses have outpaced wage growth significantly over the past few years.
Even with this jump, Northern Ireland is still the second most affordable region in the UK. In 2024, only two areas surpassed its affordability: the North East of England, with a rent-to-income ratio of 19.8%, and the East Midlands, at 24.4%. All other English regions saw greater ratios, with London seeing a shocking 42% in 2024.
And the sharply rising cost of rent will likely continue through 2025. Jordan Buchanan, Chief Executive at PropertyPal, noted that “headline rents are likely to continue rising but we expect the pace of growth to moderate over the remainder of the year.” PropertyPal’s Rental Report offers invaluable insight into the Northern Ireland housing market, showing that rental affordability is continuing to worsen.
These hard-hitting statistics show that private rental accommodation in Northern Ireland has been increasingly unaffordable since 2020. As the burden on households grows, this has created alarm among renters and policy makers as evictions continue to rise. These issues were addressed vigorously by John Campbell, economics and business editor at BBC News NI. He highlighted the broader consequences on renters across the UK.
PropertyPal’s recently released quarterly report is raising an alarm about the trend. Soaring rents are hurting consumers and causing damage to the macroeconomy. With incomes unable to catch up with rents surging sky high, a lot of families are forced to make life altering decisions where they should live.
