The Minister said £21 million will be spent in the city this year on building 145 new social houses in the Bogside and Creggan areas and on improving existing housing stock. She also announced that 138 social homes will be built in the city next year.

She made her comments at a housing conference in the City Hotel yesterday where it was announced that North and West Housing will be providing £4 million to help first time buyers get on the property ladder.

Minister Ritchie welcomed the £4 million commitment from North and West Housing and said it would help 100 first time buyers.

"This is very good news for first time buyers in Derry. House prices in Derry have risen by one hundred and fifty per cent during the last five years and despite recent reductions, many first time buyers remain unable to make that first step on to the housing ladder.

"I launched a new affordable housing partnership earlier this week in Portadown and am delighted that, coming on the heels of this, the board of North and West Housing Association has made up to £4million available for similar affordable housing schemes that are so badly needed here in Derry," she said.

Speaking to the 'Journal,' the SDLP Executive member said she is committed to delivering more social housing in Derry. "I can assure the people of Derry that I am firmly committed to increasing social housing and improving living conditions in Derry.

"That is why I am investing £21million this year. What is more, I will be back next week to unveil two new housing schemes worth over £12.5million that will provide over 100 much needed new social homes for the people of the Creggan and the Bogside," she said.

Foyle MP Mark Durkan said the funding package will be welcomed by people struggling to get on the property ladder. "I welcome the fact that the Minister has followed through on her promise earlier this year to convene a Housing Conference in Derry.

"What is more welcome is that she is here not just to talk about housing, but share actions and ideas on how to deliver much-needed social housing and mobilise the affordable housing market," he said.

Sinn Féin Councillor Tony Hassan said he hoped the announcement would help those currently on the housing waiting list. "If this seminar kickstarts a process where social and affordable housing becomes more available then that is to be welcomed," he said.