Terraced houses prove profitable over past decade
Based on Halifax’s own data, owners of terraced properties have seen the value of their property rise by an average of £118 a week over the past decade with the typical price of a terraced home increasing by 68% (£61,489) from £89,843 in 2001 Quarter 2 to £151,332 in 2011 Quarter 2.
The Halifax Property Type Review tracks price and sales movements by property type across the UK over the past ten years.
Over the past 10 years, the price of the average UK home has risen by 53% from £116,325 in 2001 Quarter 2 to £177,740 in 2011 Quarter 2 according to the Halifax. Bungalows recorded the second biggest increase (68%), followed by semi-detached properties (62%).
Despite terraced properties 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. These property types represent nearly two-thirds (63%) 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 recorded the smallest price growth over the decade to 2011 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.
Commenting, 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.”