North Coast Residents Face Housing Affordability Challenges

A former local government representative expressed her “saddened” sentiment after being unable to afford living in her native north coast town. Angela Mulholland stated that both rental prices and property purchase options in Portstewart, County Londonderry, have become unaffordable for her. She relocated from her rented residence in the town to Coleraine earlier this month. “Coastal areas have really become the playground for wealthier and more affluent people,” she said. “Homes are being used as second homes, holiday homes, places to escape to at the weekend.” She added, “The housing stock has diminished as a result of that, so there is very little to choose from if you are looking to rent… long term.” Ms Mulholland recounted that during her tenure as a councillor, she assisted “a lot of people” in securing housing in Portstewart. She added, “These were families that would have to take their children to a different school because they could no longer stay in the places where they wanted to stay, where their families were, where they had a support network.” Other regions within the United Kingdom have implemented strategies to address comparable challenges. Local authorities in Cornwall have raised the council tax levied on properties designated as second homes. Additionally, the Welsh government enacted new regulations in April 2023, asserting that these would facilitate greater affordability for individuals seeking homes in their native areas. These regulations empowered local authorities to impose an additional charge of up to 300% on top of the standard council tax for owners of second homes. Paddy Gray, a professor emeritus of housing at Ulster University, commented that such measures require careful equilibrium. He stated, “Some people would argue that’s not the way to do it because people will then sell their properties.” He continued, “If they come into the local arena and people buy them that are local, that’s great but maybe other investors will buy them and push prices up further.” He expressed his conviction that local councils in Northern Ireland ought to be granted expanded authority. He suggested, “They would be able to assess the situation and… maybe restrict the numbers in those areas.” During 2023, the Causeway Coast and Glens Borough Council requested that the Department for Infrastructure amend planning legislation to assist in managing the quantity of holiday residences. This request was made subsequent to a report which characterized the issue as “unregulated and difficult to control.” The report estimated that second homes constituted 23% of properties in Portstewart, up to half of residences in Portballintrae, and 31% of houses in Cushendun. The local council sought to mandate that property owners obtain planning permission prior to converting a permanent dwelling into a second home. At that time, the Department for Infrastructure (DfI) stated that there were no intentions to enact legislation for additional regulation. In a statement released on Friday, a DfI spokesperson commented, “This policy area remains under review.” They further added, “Councils are also responsible for determining all planning applications for housing development in their areas.” The spokesperson concluded, “Relevant provisions within the Department’s regional policy and guidance, such as the SPPS and Planning Policy Statement 7: Quality Residential Environments must be taken into account by planning authorities in plan-making and decision-taking.” Jordan Buchanan, chief executive of PropertyPal, reported that average rental costs in the Causeway Coast and Glens area have increased by 34% since 2020. He noted that the average rent within the council’s jurisdiction has “risen to £725 per month,” representing “£50 more than last year.” Mr. Buchanan indicated that this figure closely mirrors the 36% average increase across Northern Ireland, yet significantly surpasses the general inflation rate. He concluded that this trend underscores “the growing unaffordability of renting.” Mr. Buchanan attributed the surge in rents in Portrush, Dunluce, and Portstewart since 2020 to an increased demand for non-traditional rental options, such as short-term and holiday accommodations. He explained, “The increasing cost of renting is likely to limit further sharp rent rises, particularly as inflation stabilises and mortgage rates improve.” He added, “Strong labour market conditions, wage growth, limited private sector investment, and a severe shortage of new private housing continue to drive rental prices upward.” Mr. Buchanan asserted that addressing this issue necessitates “it is vital policymakers focus on increasing the supply of social, affordable, and private housing.” In December, the Department for Communities unveiled its Housing Supply Strategy, formulated in response to the housing challenges prevalent throughout Northern Ireland. The department indicated a requirement for 100,000 new homes to be constructed by 2039, with approximately one-third, or 33,000, of these designated as social housing.