Average Derry house price up £10K in year

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The average house price in the Derry/Strabane region has risen by more than £10,000 in the last year, new research reveals.

The latest University of Ulster Quarterly House Price Index shows that people can now expect to pay £120,896 for a home in Derry/Strabane.

The research, produced in partnership with Bank of Ireland and the Northern Ireland Housing Executive, covers the the third quarter – July, August and September - of 2012.

Over the same time period in 2011, the average house price in the Derry/Strabane area stood at £111,794.

Despite the rise locally, the research shows house price declines across the north declines of 3.6% over the year and 1.75% over the second quarter of 2012.

Last year the average house price in the north stood at £139,691 - compared to £138,966 this year.

“The results re-emphasise that recovery in the market is slow and, while there is some suggestion of improved price performance in parts of Northern Ireland and for certain property types, the overall weighted quarterly decline suggests that market sentiment is still to the downside,” the authors of the report - Professor Alastair Adair, Professor Stanley McGreal and Dr David McIlhatton - said.

A total of 958 transactions were carried out between July and September across the north.

Forecasters say the market across the north is likely to “remain subdued.”

The Housing Executive’s Head of Research, Joe Frey, said: “There is no doubt that the housing market will continue to remain subdued for the foreseeable future, due in particular to uncertainties in the labour market.

“Recently published research based on the House Condition Survey, however, highlights that ongoing investment in existing housing to address housing health and safety hazards would not only provide a boost to the labour market, but also lead to very significant savings for the Health Service.”