THE “continued shortage in supply” of available properties in Fermanagh is one of the key factors behind the sharp rise in house prices over the past 12 months, the ‘Herald understands.
The Northern Ireland House Price Index recently reported that the average price of a house in the North in 2024 increased by nine per-cent, with a sharp rise from the figures shown for 2023.
Fermanagh and Omagh had the second highest percentage change over 12 months, at 11-per-cent. It was just behind Lisburn and Castlereagh which jumped by 11.4-per-cent during that time.
Local estate agent, Niall Smyth, recognises that there remains a shortage of houses in the North.
“The market in Fermanagh is very much influenced by the continued shortage in supply,” he said.
“This is having an impact on price levels as a result of demand outweighing supply leading to increased competition. There are a number of key issues.
Despite the number of new houses being constructed, there remains a slow supply.
“This is because of infrastructure issues restricting development as well as the continued increase in build costs and the reduced number of tradesmen available,” added Mr Smyth.
A breakdown of the figures reveal that the cost of an average house in the North has risen by 28-per-cent, which works out at an approximate £50,000, since the end of 2019.
First-time buyers are struggling to get on the property market, with the average new build house in the North estimated to cost £75,000.
The figure has risen by 45-per-cent more than in 2019.
Mr Smyth understands that many are concerned about the prospect of buying a new home.
“People who wish to downsize or upsize are cautious about putting their house on the market without finding somewhere to move to which reduces availability of second time homes,” he said.
“The number of individual houses being constructed within rural areas is also at an all time low due to build costs and lender attitude. Unfortunately there is no quick fix.
“Government needs to assist with improving infrastructure and that is a starting point. Lenders also need to alter their policy on new build homes in rural areas.”
The Derrygonnelly man also recognises that house prices will “continue to rise” in Fermanagh..
“Lenders will continue to keep control of the market in general by controlling lending, but I am of the opinion that as a result of shortages, prices will continue to rise,” Mr Smyth said.
“Regeneration of existing buildings in towns and villages needs to be incentivised by Government policy and this would have the most immediate impact.”
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