Derry is the most affordable city in 2013

Derry is the UK’s most affordable city in the UK, according to new research.

In the 2013 Lloyds TSB Affordable Cities Review, Derry tops the affordability league.

Their survey says that the City of Culture has an average property price (£94,776) that is 3.38 times gross average annual earnings. The two next most affordable cities are also in the north - Lisburn (3.50) and Belfast (3.67).

Nitesh Patel, housing economist at Lloyds TSB said: “There has been a significant improvement in housing affordability in many of our major urban conurbations over the past five years, largely reflecting the general decline in house prices since 2008.

“There is a very clear north-south divide to the locations of the most affordable UK cities with significantly better affordability in the north in general. There has also been remarkably little change in the identity of the most and least affordable cities over the past decade.

“Looking forward, the marked improvement in city affordability is likely to help support demand for those able to raise the necessary funds to enter the housing market.”

In 2012 Derry was ranked second in the affordability table behind Salford, now ranked sixth.

Last month the University of Ulster’s (UU) latest Quarterly House Price Index recorded an average cost of a house in Derry and Strabane of £86,986 - compared to the Northern Ireland average of £138,969.

In August 2007, the same index recorded an average house cost of £189,515 in Derry/Strabane.