When viewed over the past year, statistics collated by the University of Ulster show prices have fallen by nearly a third (29.7 per cent), similar to the rate of decline in the previous survey, which suggests the recovery in the North West may be lagging behind other parts of Northern Ireland.

However, it is understood that the small number of sales made analysis difficult.

The university’s survey, in partnership with Bank of Ireland and the Northern Ireland Housing Executive, shows the weighted increase in the overall average price of a house compared with the second quarter was 2.1 per cent but this is not reflected in all areas of Northern Ireland.

According to the survey, the average price in the third quarter was £164,017 compared with £158,886 in the second quarter.

The Quarterly House Price Index is the most broadly-based and authoritative of all those undertaken in Northern Ireland. It covers about 120 estate agents and records all open-market transactions, not just those involving mortgage lenders.

Authors of the report, Professor Alastair Adair, Professor Stanley McGreal, Louise Brown and David McIlhatton, issued a statement saying: “The recovery in the market is still piecemeal. Positive signs are the declining rates of annual price decrease across the different sectors of the market and an overall weighted increase over the last quarter of 2.1 per cent. But sales transactions, at best, are only a third of the volume expected under normal conditions, suggesting the market still has some distance to go.”

For Londonderry/Strabane the overall average price fell by 29.7 per cent over the year to £147,000, similar to the annual rate of decline observed in the previous survey. The figures suggest recovery in the north west may be lagging behind, although the small number of sales made analysis difficult. Over the quarter there was a 6.6 per cent decline in the average price.