48% homestoo costly

LESS than half of homes sold in Londonderry in 2010 were sold at affordable prices whilst the district has experienced a rapid increase in housing stress, according to a new report released by the Housing Executive (NIHE).

The study shows that in 2010 Londonderry households on an average income of £18,000 were able to pay mortgages on houses costing approximately £123,146.

The difference between the price of an average Londonderry house and the average household’s capacity to pay a mortgage on one left a ‘positive’ affordability gap of £32,146 in 2010. This meant that just 48 per cent of houses sold here were afforable compared to 58 per cent throughout the province.

Hide Ad
Hide Ad

Only in seven other districts in Northern Ireland was housing less affordable.

Housing stress, meanwhile, has shot upwards in the North West.

Between 2006-10 “two housing management districts in Derry City have experienced exceptionally high growth as has Lisburn Dairy Farm (dominated by the Twinbrook and Poleglass housing estates),” the NIHE’s Review and Perspectives 2012-15 states.

By contrast Limavady has experienced a decline in housing waiting lists. “Peripherality may well be an important factor (Fermanagh and Limavady),” it states.

Hide Ad
Hide Ad

Since 2010, however, the average house price in Londonderry/Strabane has declined to £120,595 in the first quarter of 2011. This was down 23.8 per cent year-on-year.

Londonderry also has one of the highest proportions of stock owned by private housing associations.

The study states: “The housing associations own and manage stock throughout Northern Ireland, but there are particular concentrations in a number of district council areas including Belfast (40 per cent of all housing association stock at March 2011), Derry City (12 per cent), and Lisburn (7 per cent).”

Brian Rowntree, Chairman of the Northern Ireland Housing Executive explained: “We review the housing market in Northern Ireland annually and this latest analysis indicates the next three years will be very challenging, particularly around funding and the impact of changes to the Housing Benefit system arising from Welfare Reform.”