Average property prices in Northern Ireland rose by 25% over the past year, with property price inflation in Derry, where prices soared by a staggering 31%, leading the way, according to Nationwide.

The average property price in Northern Ireland now stands at £146,367. Property in Belfast remains the most expensive place to buy a house in Northern Ireland, with the average property costing £193,180.

Fionnuala Earley, Nationwides Group Economist, said: " Northern Irelands housing market is booming. The West is the cheapest place to live in Northern Ireland with an average price of £141,591. The annual rate of growth of prices in the West was 21% in Q2 2006 and 13% in each of the previous two quarters."