The residential housing market in Fermanagh and Omagh continues to rise as the latest figures show a 3.4 per cent increase in Quarter One (January to March, 2022).

According to the statistics collated by the Land & Property Services and NISRA, the annual change has been 13 per cent – the fourth-highest out of all the council areas in Northern Ireland, with the standardised price of a house sitting at £153,267.

But while the property market is buoyant locally, demand for houses is currently outweighing supply.

One reason is the quick turnaround in sales, normally a couple of weeks, as well as the influx of people from outside the county buying.

William McFarland, of Eadie, McFarland & Co., said what is being experienced locally is also been seen in housing markets across the world.

He said after coming out of the Covid-19 lockdown, the property market took off sharply and has continued this way.

“Supply levels are at an all-time low. In County Fermanagh, at the start of 2020, there were more than 600 properties for sale across all property types. This was a normal supply level. However, this week, there are 212 properties for sale.

“So, we are clearly in a seller’s market, given that houses have been selling within days or weeks for strong prices, typically above guide price.

“Fermanagh also experiences a trend of immigration from other areas, and these buyers do not sell a property in Fermanagh – they only buy, and this puts further pressure on stock levels.”

Agreeing with this analysis, Nick Finlay of Montgomery Finlay & Co. said: “The fundamental issue in the market is the lack of supply and the high level of demand continuing.

“The issues of supply are amplified by the speed at which a property is achieving ‘Sale Agreed’ status, creating an even more challenging environment for purchasers not only competing against the limited supply, but also the speed of property [sales] closing.”

Other factors

Both William and Nick also believe other factors are playing into the current situation of high prices.

“The cost of building has had its sharpest increase on record with material prices, in particular, rising sharply since the start of 2020.

“We are fortunate in County Fermanagh to have a number of strong, reputable local developers offering high-quality new-build homes. They have faced these significant cost increases and they have had to increase the price of the homes which they sell, and the market has responded very well with new-build bookings continuing at pace.

“However, if the building supply of new-build homes were to slow, this would reduce stock levels again,” he added.

“The basic economics of limited supply and high levels of demand are causing the prices to gradually increase,” explained Nick.

“In relation to the increase in prices for new-build properties, developers are facing difficult times with the cost of materials and labour increasing at a faster rate and percentage than the house prices are.

“They are trying to absorb more and more of those costs to limit prices increasing, but they can only absorb so much.

“In addition, fuel prices and the government changing plant machinery from red to white diesel is another cost to bear.”

With a “significant shortage” in property available, Nick believes the demand will continue for the immediate future.

Looking to later in the year, William is expecting a drop in the price growth which would be a more sustainable marketplace for all.

“We would be kidding ourselves if we thought that houses would sell within a few days forever.

“It is likely that the increases to Bank of England base rate mortgage costs, and cost-of-living inflationary pressures, will moderate demand and perhaps bring more property to the market,” concluded William.