Average price of Derry house dips to £211,716 but still at highest level since 2008 crash
The average price of a house in Derry and Strabane fell marginally to £211,716 in the third quarter of 2026 but remains at a level not seen since the months before the property crash of 2008.
Between Quarter 2 and Quarter 3 the average price of a home in Derry and Strabane fell by £797 (0.4 per cent) from £212,513 to £211,716.
But the marginal dip follow a period of considerable growth in the city and district.
In Quarter 1 of this year the average cost of a home in Derry/Strabane exceeded the £200,000 benchmark for the first time since the global financial crisis of 2008.
And now the latest Ulster University’s Quarterly House Price Index shows house prices locally are up by £17,472 (9 per cent) from £194,244 in Quarter 3, 2025, to £211,716 in Quarter 3, 2026.
Notwithstanding the year-on-year increase Derry/Strabane recorded the second lowest average price in the North after Antrim and Newtownabbey (£211,236) in July, August and September.
Across the North prices continued to rise in all but three local government districts – Derry/Strabane, Antrim and Newtownabbey and Mid Ulster – in the third quarter of 2026, with the average transaction price reaching £233,022.
The Quarterly House Price Index, produced by Ulster University in partnership with the Northern Ireland Housing Executive and Progressive Building Society, analysed 5,634 property transactions between July, August and September 2026.
Despite continued house price growth in general affordability remains a challenge, particularly for first-time buyers who face higher deposits and greater borrowing commitments, the authors said.
Dr Michael McCord, Reader in Valuation, Investment and Finance, and lead researcher, said: “The latest Q3 2026 findings highlight the continued stability and resilience of NI’s housing market, particularly when compared with other parts of the UK which are experiencing downward pressure on house prices, increasing asking-price reductions and greater market uncertainty.
"The average house price now stands at £233,022, representing a 1% increase over the quarter, and 5.4% annual growth compared to this time last year. Importantly, this performance reflects a market characterised by consistent buyer demand, relatively stable mortgage conditions, and ongoing constraints in housing supply.
"Although affordability pressures and uncertainty surrounding inflation and interest rates remain important considerations, there is little evidence of any significant weakening in the overall NI market. Looking ahead, we anticipate continued stability, with prices remaining positive throughout the remainder of 2026.”
Ursula McAnulty, Head of Research at the Housing Executive, which commissions the research, said: “The Q3 2026 analysis shows that house prices continued to rise across all property types, underlining the resilience and sustained stability of the NI housing market.
"Looking ahead, the expectation is for continued – albeit modest – price growth, provided wider macroeconomic and mortgage lending conditions do not deteriorate significantly. There is, however, growing recognition that buyers are becoming increasingly conscious of affordability, with realistic asking prices and property quality continuing to play a key role in bringing sales to completions.”
Michael Boyd, Chief Executive, Progressive Building Society, said: “Another confident performance by the NI housing market in the third quarter reflects the stable interest rate environment throughout that period and a continued tight supply picture. However, growing inflationary pressures since then have prompted concerns that near-term interest rate rises could be on the horizon, dampening sentiment in the market."