Derry house prices up

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Research published earlier this week has shown that Derry house prices have risen by six per cent in the last year.

The latest University of Ulster Quarterly Price Index reveals that Derry has bucked the trend shown across Northern Ireland, where the average house price fell by 7.7 per cent.

The average house price in Derry is now £158,276.

Authors of the report - Professor Alastair Adair, Professor Stanley McGreal and Dr David McIlhatton - said this price shows that there has been significant growth in the market in the north west.

However, they added that the limited number of house sales in the area “introduced significant volatility into the market.”

Produced in partnership with Bank of Ireland and the Northern Ireland Housing Executive, the Index shows that after an optimistic start to 2010 in the province, prices slipped back in the second half of the year.

The university’s survey of 110 estate agents for the final quarter of the year found that the average price of a house in Northern Ireland was £149,795.

It also found that the volume of house sales continued to fall.

The authors of the report said the second half of 2010 was a “difficult period” for Northern Ireland’s housing market.

“It seems that the prospects for the UK economy, local fears of public sector cuts and possible contagion effects from the Irish economy may have dented confidence in the local market and that the severe weather conditions may have impacted on sales volumes in the final quarter.”

Meanwhile, HML, the UK’s leading financial outsourcing company which has a base in Derry, has predicted that 2,540 homes in Northern Ireland will be repossessed this year.

Northern Ireland is expected to experience the worst rate of repossessions in the UK, which reflects the fall in house prices “combined with the regions links to the troubled Republic of Ireland economy.”