Average affordable house in Londonderry cost £91,000 last year

In 2010 48 per cent of homes sold in Londonderry were considered to be at a reasonable price compared to 2008 when just 3 per cent of sold houses were deemed affordable.

Whilst the average affordable house sold here cost £91,000 there was a substantial gap between that price and the £123,146 households on a median income of £18,000 felt comfortable buying.

This resulted in an ‘affordability gap’ of £32,146 (£127k minus £91k) in 2010 compared to a more substantial £40,000 ‘affordability gap’ between the average affordable house and the price an average income household felt comfortable with in 2008.

The details are contained in new research published by the University of Ulster (UU) and the Northern Ireland Housing Executive (NIHE) which shows that houses are generally not as astronomically expensive across Northern Ireland as they were at the height of the property boom.

Announcing the results of the research into house prices and affordability, Joe Frey, the Housing Executive’s Head of Research said: “An analysis of affordability in the Northern Ireland housing market is encouraging for first time buyers and investors.

“With house prices at 2005 levels it means that many households are in a much more favourable position to meet the mortgage costs of an affordable home.

“In 2010 households on a median income (£21,000) were able to afford the mortgage payments for a house costing £147,000, compared to 2008 when households could only afford a home priced £97,000.

“In 2008 only 3 per cent of homes sold were considered to be at an affordable price, compared to 58 per cent in 2010.

“This is a welcome and positive trend which is reflected across most of Northern Ireland.”

He concluded: “While this is encouraging news for the housing market, difficulties remain.

“The much more stringent lending criteria being applied by most banks and building societies coupled with increasing uncertainty in the labour market mean that first time buyers and investors have difficulty in being in a position to take advantage of the improved opportunities to purchase homes.”