Terraced houses see biggest price rises over past decade
Based on the mortgage lender's data, owners of terraced properties have seen the value of their property climb by an average of £118 a week over the past decade.
The typical price of a terraced home leapt by 68% (£61,489) from £89,843 in the first quarter of 2001 to £151,332 in the second quarter of this year.
Bungalows recorded the second biggest increase (68%), followed by semi-detached houses (62%). The price of the average UK home has risen by 53% from £116,325 in 2001 to £177,740 this year.
Despite terraced houses recording the strongest price growth over the past decade, they remain the most affordable property type. The price of an average terraced property is 15% below the average UK house price of £177,740, and 45% lower than the price of the average detached home of £273,173. In 2001, the typical terraced house price was 23% lower than the UK average house price for all properties.
Terraced homes also saw their share of all house sales rise by more than any other property type over the past decade, increasing from 31% in 2001 to 34% in 2011. In contrast, detached homes were the only property type to see a drop in their share of all sales since 2001, declining from 21% to 14%. This decline was driven by a large drop in the proportion of home movers buying detached homes (from 30% to 22%).
Semi-detached and terraced homes have remained the most popular types of property purchased over the last 10 years. They represent nearly two-thirds of all home sales in 2011, up from 59% in 2001. For first-time buyers, semi-detached homes have risen in popularity, accounting for 29% of purchases in 2011 compared with 26% in 2001.
Flats the worst price performer
Flats recorded the smallest price growth over the past decade, with the value of a typical flat rising by 49%. This relative underperformance largely reflected an over-supply of this type of property in some parts of the country. Flats more than doubled during the 2000s as a proportion of all dwellings built in England, rising from 20% in 2000/2001 to a peak of 50% in 2008/09. This proportion has since dropped to 35% in 2010/11 during the marked downturn in the housing market.
Terraced homes recorded the largest price increases of any property type in eight of the eleven UK regions tracked over the last 10 years. In contrast, detached properties and flats witnessed the smallest percentage gains over the period across nine regions. Yorkshire and Humber and Scotland accounted for the biggest price rises across all five property types since 2001, while London accounted for the smallest gains across all property types.
Those looking to trade down later in life have seen their potential cash windfall rise by over a third over the past ten years. Trading down from a detached home to a bungalow would have earned an average windfall of £86,006 in 2011; an increase of 35% (£22,413) since 2001.
Suren Thiru, Halifax housing economist, said: "Although all property types have recorded significant price increases overall during the past decade, terraced homes have seen the biggest growth. Demand for such properties is likely to have been supported by their relatively favourable levels of affordability over the period. The rapid house price rises during much of the 2000s priced many potential home movers out of the upper end of the UK housing market."
Table 1: UK house prices by property type, 2001-2011
|UK||Q2-2001 £||Q2-2011 £||10 year % Change|
|Flat & Maisonettes||109,936||163,825||49.0%|
Table 2: Property sales by buyer and property type, 2001-2011
|Property type||Buyer type||2001 Q2||2011 Q2|
|Terraced||First Time Buyers||44%||42%|
|Semi Detached||First Time Buyers||26%||29%|
|Flats||First Time Buyers||23%||21%|
|Detached||First Time Buyers||6%||5%|
|Bungalows||First Time Buyers||2%||3%|