Quilter: House prices show changing tastes post-pandemic
Semi-detached properties saw the biggest rise in prices between January 2020 and January 2021 (9.1%), while flats and maisonettes only saw a rise of 2.6%.
Karen Noye, mortgage expert at Quilter, said: “The working from home revolution, coupled with people having a desire for more outside space, has meant that semi-detached houses have seen the biggest increase of all property types.”
She added: “Following months of people being trapped in their homes, with those suffering the most in flats and high rises, this should come as no surprise.
“Similarly, big cities such as London have seen much more modest increases as people are possibly choosing to live further out as companies and workers embrace more flexibility and less time in the office.”
However, Noye added that the long-term trends are yet to be seen, and will be influenced by the end of the stamp duty holiday and Help to Buy scheme.
She said: “As long as the government is continuing to pile money into the sector house prices don’t seem ready to decrease yet.
“However, the more you pump the balloon, the more likely it is to pop so a house price correction is certainly a possibility at least in the medium term.
“While the mortgage guarantee scheme is fantastic for giving first time buyers a helping hand to get onto the property ladder, it does leave them exposed to the problems of negative equity if house prices do drop in the future and is something they should be cautious about.“