Lack of affordable mortgages and a flagging local property market continue to prop up rent prices in and around Belfast, with values holding their own in the face of steady tenant demand, according to new research.

The latest quarterly report by online lettings company Citylets shows private landlords raked in an average £590 a month for the year to end of September, little change on the same period a year ago.

"House sales remain historically low because many first-time buyers are still choosing to take refuge in the private rented sector, where rents remain relatively affordable when set against the cost of purchasing a home," said Citylets analyst Dan Cookson.

"Government cutbacks, rising energy bills and worries that the Eurozone crisis will make matters worse are also cited as reasons by tenants for staying put. Nevertheless, the market appears well supplied in Belfast, particularly for two-bedroom properties, which are changing hands regularly to meet local tenant interest."

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The Citylets report also shows that fears among landlords that the collapse in house prices would prompt a surge in the number of properties available for rent on to the market had failed to materialise, with stable demand from tenants helping to keep the rental market relatively stable.

Citylets analyst Dan Cookson added: "The property market in Northern Ireland has experienced unprecedented highs and lows in only a few years, but the rental sector, which hasn't been immune to some price volatility, has put in a much steadier performance. This is because more people see renting privately as a sensible, more flexible option than being on the property ladder in the current climate.

"Certainly, in Belfast, as in many parts of the UK and Ireland, renting is no longer a temporary solution for one particular generation. Younger people make up the bulk, but we have definitely seen an increase in the number of working families renting because they want to move to where the work is, cut their commute or gain extra space.

"Renting has become a lifestyle choice," added Dan.

In the year to end-September, rent prices for two-bedroom houses rose by 1.5% to £451 a month, while average rent prices for a one-bedroom apartment was £512, up from £493 previously. The average monthly rent for a two-bedroom apartment at the end of September was £577, down almost 2% from a year earlier.

(GK)