Is Belfast a good place to own a Buy-to-Let: The Must-Know Neighbourhoods for Maximum Yields 

With the Titanic, Ulster Museum, Belfast City Hall, Crumlin Road Gaol, the world famous Queen’s University, and plenty of bustling bars and restaurants, the old smoke is a great place to be, for people of all ages. So, it is little surprise that there is constant unwavering high demand for rental properties in Belfast.

2023 has been a testing year, but investing in a buy-to-let in Belfast could be a smart move to expand your portfolio. As an expert landlord insurance brokerage working with the best providers in the business, we can help with landlord insurance in Belfast. With this in mind, we decided to take a look at whether Belfast is a good place to own a buy-to-let and which neighbourhoods offer maximum yields.

Will you hire a letting agent?

It is normal for letting agencies in Belfast to ask for 5-15% of landlords’ monthly rental incomes as a fee for their services. So, you should have a good think about whether you want to use one or not when purchasing a buy-to-let property. 

There are pros and cons to using a letting agent. One of the benefits is that it will take a weight off your mind knowing a letting agency is taking care of collecting rent and finding new tenants. These days, online property portal platforms can be a way of bypassing the letting agency as an intermediary. 

Will you include bills in the rent? 

The cost of living crisis has led to a rise in household bills in Belfast and across the UK. Therefore, it is important to be mindful of tenants and consider if you will offer to include bills in tenants’ rent or not. Weigh up both options and see what makes the most sense. 

Are you targeting the student market? – Go for a buy-to-let in the Holylands or Stranmillis areas

Are you looking to rent to student tenants? Queen’s University has over 25,000 students, making Belfast an ideal city for student landlords. The Holylands and Stranmillis are buzzing areas with high student populations and plenty of takeaways, restaurants, bars, and supermarkets.

Now, let’s consider some other areas of Belfast where you can get maximum yields. The four Belfast neighbourhoods we will focus on throughout are – the Holylands, Stranmillis, Stormont, and Eastside.

Stranmillis is the most affluent neighbourhood 

Looking to get a buy-to-let in an affluent area of Belfast? Out of the four we have focussed on, Stranmillis is the most affluent area and the neighbourhood with the highest employment rate in Belfast.

Rental prices of buy-to-lets in Belfast neighbourhoods

A major factor that will determine how you maximise your rental yields as a landlord in Belfast will be how much tenants are willing to pay. Like in every city, there are fluctuations in average private market rental prices in different areas of Belfast. The overall average rent for all types of property across Belfast is £1,068 per month. 

Let’s break it down and take a look at data on rental prices in the four neighbourhoods. 

Average monthly rent for a one bed is highest in the Holylands

The Holylands gets its notorious name due to its streets with biblical names, such as Jerusalem and Palestine Street. Not only is this neighbourhood right next to Queen’s University and down the road from Belfast city centre, but it is also one where you can make a decent income as a landlord of a one bedroom property. Our data showed the average monthly rent for a one bed home in the Holylands is £884. 

At the other end of the price scale, the average rent for a one bedroom in the post-industrial EastSide area is £634. Nonetheless, EastSide is brimming with wonderful cafés, bars, and restaurants on the Conn’s Water River. EastSide is an up and coming neighbourhood that is becoming increasingly popular with renters. 

Average monthly rent for a two bed property is highest in Stranmillis

Strainmillis on the banks of the River Lagan to the south of the city is an attractive residential area to live in. Hence it’s not surprising that the average monthly rent for two bed properties was highest in Stranmillis, at £1,018.

Larger size buy-to-lets

You may want to consider buying a rental property in Belfast with more bedrooms so that you can rent to family tenants. Families tend to stay for a long time, providing you with a long-term stable rental income. 

Let’s explore the average monthly rent for three and four bed properties in different areas of Belfast. 

The highest average monthly average rent for three beds is in Stranmillis and Stormont

Do you want to own a three bedroom buy-to-let in Belfast? Our findings show that the highest average monthly rent is in areas of Stranmillis and Stormont. Close to Belmont Park, Stormont is popular amongst families.

The highest average monthly rent for four beds is in the Stormont and Stranmillis areas

If you are looking to rent to larger families or become a HMO landlord (houses in multiple occupation) in Belfast, a four bedroom buy-to-let is ideal. Our research found that in Stormont and Stranmillis, the average monthly rent for four beds is £1,608. 

In the Holylands and EastSide, the average monthly rates for four bedroom homes are a little lower, at £1,318 and £1,300 respectively, 

Source – https://www.home.co.uk/for_rent/search 

Average property prices of buy-to-lets in Belfast 

Purchase cost is an important factor when buying an investment property. For long-term success, landlords should seek a low purchase price and high monthly rent fees. 

The average standardised house price in Belfast in Q3 of 2023 according to the NI House Price Index statistical report was £157,629. We will look at the average prices for flats and semi-detached, detached and terraced houses. 

You can purchase a one bedroom buy-to-let in EastSide for £96,238 on average

EastSide is a vibrant modern area that is located by the iconic Titanic Dock & Pump House. 

The average price of a one bedroom buy-to-let in this side of town is £96,238, over £40,000 cheaper than the average price of buying a one bed in the Stormont area. 

Two beds are most affordably priced in EastSide 

Our research unearthed that two bedroom properties go for the cheapest price in EastSide, with an average of £127,469. 

In contrast, two beds in the picturesque suburb of Stranmillis go for £181,867. 

Three bedroom buy-to-lets are most affordable in Stormont

If you are looking to rent to stable family tenants, a three bedroom in Stormont could be ideal. This area had the cheapest average purchase price for three bed homes, at £183,517. 

Another attractive investment option is to get a three bed in the Holylands area. You will never have to worry about a shortage of tenants considering its large student population.

Four beds are most affordable in the EastSide and Stormont areas

Four beds are a great investment for HMO landlords, and the cheapest area to acquire one is in EastSide, with an average price of £304,982. 

The second cheapest option is Stormont where properties sell for  £360,309 on average.

Source – https://www.home.co.uk/guides/house_prices 

You’ll find the best rental yields for buy-to-lets in Stormont!

Stormont finished in first place in our rankings. That means you have the best chance of maximising your rental yields when in Belfast by investing in a property in Stormont. Stranmillis came closely behind in second, and the Holylands and EastSide came joint third. 

Commuter links 

Belfast city centre is a bustling business hub and you may want to target reliable professional tenants. Commuter links are important for this tenant type, so make sure there are various, regular public transport options.

The 7a/7b bus from Rugby Road in the Holylands will take you to Howard Street in Belfast’s central business district in just 7 minutes. EastSide also has great commuter links and a bus will get you into the business district in just 7 minutes!

Source https://www.google.com/maps/ 

Stormont has the lowest crime rate

Owning a buy-to-let in a neighbourhood with a high crime rate can cause you headaches. As well as an increased risk to damage to your property, it will be harder to attract tenants.

When we looked at the crime rates for February 2023, it turned out that Stormont had the lowest crime rate. The Holylands had a much higher crime rate.

Source https://www.ukcrimestats.com/Postcode_Districts/ 

Wherever you choose to purchase your rental property, it’s important to protect your investment with landlord insurance. This will protect your building and contents from damage, theft, loss of rent and more. CIA are an independent broker who can find you a competitive deal. 

All things considered, Belfast is a modern city which has experienced exciting levels of growth in recent years. Why not expand your property portfolio as a landlord by getting a place there? 

Methodology

The goal was to weigh up the areas in Belfast offering the best rental yields. We therefore found data on average rent prices in the postcode of each area and combined this with data on the average house prices since these are two key factors buy-to-let investors need to consider. Our findings unveiled Stormont to be the neighbourhood offering maximum yields for buy-to-lets in Belfast.

For the best commuter links, we went onto Google Maps and measured how long it took to go from the neighbourhood in question to the Belfast City Hall which is located in the business district via public transport. 

Sources

https://www.google.com/maps/  

https://www.home.co.uk/guides/house_prices 

https://www.home.co.uk/for_rent/search 

https://www.nihe.gov.uk/getattachment/56b0a328-6754-4b5e-8d00-8d7c38a975bd/performancee-private-rental-market-NI-January-June-2022.pdf 

https://russellgroup.ac.uk/about/our-universities/queen-s-university-belfast

https://www.ukcrimestats.com/Postcode_Districts/