Semi-detached and terraced homes are outperforming the rest of the housing market as buyers increasingly balance their need for space against affordability, according to e.surv.
Average house prices across Great Britain rise by 1.8% in the year to August, but e.surv’s latest house price index reveals significant differences between property types.
Semi-detached homes record the strongest national growth at 2.6%, followed by terraced properties at 2.3%.
Detached homes rise by a more modest 1.2%, while flats are the only property type to record an annual decline, falling by 0.7%.
MIDDLE OF THE MARKET
Rob Owens (main picture, inset), head of research at e.surv, said: “The strongest price growth is currently concentrated in the middle of the market, with semi-detached and terraced homes outperforming both detached properties and flats nationally.
“This suggests buyers are becoming increasingly pragmatic, seeking enough space for their needs without stretching their budgets to a larger home.
“Affordability is not the only consideration, however. Buyers are also weighing up the certainty of ongoing costs, including service charges and ground rent.
“Local housing stock plays an important role too, which helps explain why flats are performing more strongly in established apartment markets such as London and Scotland.”
The regional figures underline the pressure at the more expensive end of the market.
Detached house prices fall by 1% year-on-year in the South East and 0.4% in the East of England, while semi-detached and terraced homes continue to record stronger growth.
FLATS BUCK TREND IN SCOTLAND
There are some notable exceptions to the national pattern.
Flats have been Scotland’s best-performing property type for the past eight months and are now 7.2% more expensive than a year ago.
They also lead growth in the North East, rising by 4.6%, although e.surv cautions that the series is more volatile.
London’s distinctive housing market produces another variation. Detached property prices are down 6% annually, compared with declines of 2.9% for both flats and terraced homes.
