The Fermanagh and Omagh Council District area now has Northern Ireland's (NI) highest average house price, with the latest data showing that local house prices rose by close to 25 per cent in the final months of 2021, pushing local property prices far above the national average.

An analysis of quarterly trends for NI's housing stock shows that the average house price in Fermanagh and Omagh for Q4 (October, November and December, 2021) stood at £240,453 – dramatically up by 24.9 per cent from £192,571 in Q3 (July August and September, 2021).

The latest Quarterly House Price Index report, produced recently by Ulster University, indicates high levels of market demand coupled with a market that is also facing inflationary pressures and a continued shortage of quality housing stock – a matter that one local lender has warned means: "prices will continue to rise".

The Ulster University research – produced in partnership with the Northern Ireland Housing Executive, and Progressive Building Society – analysed the performance of the housing market during 2021's Q4.

Premised upon 2,234 transactions across the country in that time, the report revealed an overall average NI house price of £198,890 – far below prices attained in the Fermanagh and Omagh district – representing a weighted annual level of growth of 8.3 per cent between Q4, 2020 and Q4, 2021.

The growth was primarily driven by increases within the semi-detached and detached segments of the market.

Lead researcher, Dr. Michael McCord, Reader in Real Estate, Ulster University, said: “The latest price statistics show a market which has remained resilient to the wider political and economic circumstances in what is traditionally a quieter period of the year.

"The analysis does show a softening in price growth in comparison to previous quarters – both in annual and quarterly terms – but one which continues to display strong demand signals, and allied with ongoing supply-side challenges, does not show any signs of correcting in the immediate future.”

Michael Boyd, Deputy Chief Executive and Finance Director, Progressive Building Society, said: “There are a number of factors that may influence the success of the market in 2022, including increased inflation, the potential rise in interest rates, levels of employment and sectoral supply issues.

"However, a post-pandemic outlook, coupled with continued market confidence, sets the scene for an active housing sector in 2022 with the consensus among agents being that strong levels of transactions will continue over the next 12 months.”

Reacting to the report's finding, Niall Smyth, of Smyth and Leslie, said: "I would concur with the findings of the report. Property in Fermanagh and south-west Tyrone is continuing to achieve a positive level of demand, continuing to be boosted by families moving home from England as a result of the ability to work remotely, parties retiring to this region, or [people] searching for a better quality of life.

"[But] there is an issue regarding supply, due to the minimum level of new housing being constructed, particularly in the local villages and rural areas.

"This is further exasperated by lenders' attitude towards self-build finance, which is quite negative currently.

"Parties are now having to reconsider the type of house they wish to pursue with a focus on resale and the potential for refurbishment and extension to such properties, depending on circumstances.

"Going forward, I am of the opinion that in the medium-term, demand will continue to outweigh supply, and as a result prices will continue to rise," said Mr. Smyth.