Derry/Strabane house prices decline by -2.2% to £123,525

Derry City and Strabane remains the cheapest region in the north to buy a house after the average price of a property declined by -2.2% to £123,525 in the second quarter of 2021.
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The latest Quarterly House Price Index report showed Derry and Strabane was one of only four council areas to post a decrease.

The biggest fall was in Ards and North Down where the average price of a home fell by 5.7% to £207,646.

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There were equally decreases in Newry, Mourne and Down (1.8%; £186,537) and Lisburn and Castlereagh (0.8%; £204,004).

Research has reported a decline in Derry house prices.Research has reported a decline in Derry house prices.
Research has reported a decline in Derry house prices.

The Ulster University research, which has been produced in partnership with the Housing Executive and Progressive Building Society, shows Causeway Coast and Glens now has the most expensive average house price in the north with prices having increased by 5.6% from the last quarter resulting in an average house price of £211,861.

The dip in Derry/Strabane bucked the regional trend.

The report reveals an overall average house price of £195,242 which represents a weighted annual level of growth of 9.2% between Q2 2020 and Q2 2021. Where quarterly movements are concerned, the Index displays an increase of 2.8% relative to Q1 2021.

This growth remains driven by increased activity, particularly within the semi-detached and detached segments of the market across the region but also as a result of more nuanced increases within the terrace/townhouse and apartment sectors, which have witnessed a rejuvenation in transaction prices.

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The report is premised upon 4,138 transactions, the highest volume of transactions recorded in the index in almost two decades, and substantially higher than the 2,829 reported in Q1, 2021 and the 570 presented in Q2 2020 due to the market closure.

Lead Researcher, Dr Michael McCord, Reader in Real Estate, Ulster University said: “As indicated throughout the previous four reports, the psychological effect of the COVID-19 pandemic upon the housing market is well and truly discernible, with the race for space clearly evident.

"Indeed, in the first quarter of 2021 we noted the increased competition amongst buyers, with viewings instantaneously translating into firm offers and trading up activity. Moving into the second quarter of the year, this trend has firmly continued with increased house prices and transaction levels.”

Michael Boyd, Deputy Chief Executive & Finance Director Progressive Building Society commented: “Despite the economic challenges of COVID, the resilience, affordability and changing patterns has seen momentum and confidence continue within Northern Ireland’s housing market throughout the first half of 2021 with the highest level of transactional volumes seen since 2007.

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"While the soon to be phased out stamp duty holiday has been an important contributory factor, further easing of restrictions and a better than expected economic outlook augers well for the market in the coming months with transaction volumes expected to remain consistent with the first half of the year.

“The longer-term picture, however, must account for the end of the furlough scheme with the Northern Ireland Executive and the UK Government playing an important role in leading the policy environment to support economic investment and drive consumer confidence.”

Elma Newberry, Assistant Director of Land and Regeneration with the Housing Executive, which commissions the research, said: “The second quarter of the year saw an exceptional level of activity in the local housing market for a number of reasons including households wanting to trade up for more space, and this contributed to another increase in average prices.

"Looking ahead, we are mindful of the challenges facing the construction industry because of the availability and cost of materials.

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"New housing supply is an important component of the housing market and the Housing Executive is continuing to work with partners and stakeholders to ensure an appropriate supply of new homes across all tenures.”