A new survey suggests property transactions in the North are at their highest level for two years.

The latest University of Ulster House Price Index shows that during the fourth quarter of 2009 the rate at which house prices were falling dropped just below 7 per cent from 35 per cent at the start of last year.

The authors of the index said there had been a significant increase in residential property sales in the fourth quarter.

Prof Alastair Adair, Prof Stanley McGreal, Louise Brown and David McIlhatton said: “This latest survey indicates an improving housing market. Although overall average prices are still down, the rate of price decline has slowed significantly, with prospects for a modest increase in price levels during 2010.”

The average price of a house in Northern Ireland in the fourth quarter of 2009 was estimated to be £161,429.