House Prices in Derry cheapest in north

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House prices in Derry and Strabane are still lower than any other region in the north, new research reveals.

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 the Northern ireland average of £138,969.

Compiled in conjunction with Bank of Ireland and the Northern Ireland Housing Executive, the UU report records an increase in the number of house sales and suggest signs of stability are returning to the market.

The authors of the report - Professor Alastair Adair, Professor Stanley McGreal, Dr David McIlhatton and Dr John McCord said: “The current survey demonstrates some encouraging signs for the Northern Ireland housing market, notably the increased volume of transactions which suggests that there is greater activity in the marketplace, and the overall price level which has held steady over the past quarter.”

The latest house price index, covering the final three months of 2012 are based on a sample of 1,357 transactions from a network of estate agents.

Alan Bridle, UK Economist at Bank of Ireland UK said:“While transactions remain significantly shy of peak levels, the indications that properties are moving at their fastest rate in five years would, if sustained, sound a positive note for the broader housing economy in Northern Ireland.

“However, both price and activity trends are not uniform across the region with the market adjustment seemingly complete in some locations but not in others.”

South Belfast has the highest house prices in the north, where a house costs an average £185,137.

In February 2012, the Quarterly House Price Index recorded an average cost of a house in Derry and Strabane of £120,594.

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