The average price of a detached family home has risen by more than any other property type over the past year, according to new research by
Halifax.
Based on
Halifax's own house price data, owners of detached properties have seen the value of their home increase by £91 a day over the past year with the average price rising by 13 per cent from £266,060 in 2009 Quarter 2 to £299,295 in 2010 Quarter 2.
Prices for all other property types rose by between eight and nine per cent over the period.
Semi-detached homeowners are the biggest property winners over the past decade. Semi-detached properties recorded the largest average price increase (111 per cent) since 2000; marginally higher than for terraced properties (110 per cent) and bungalows (109 per cent).
Flats were the only property type not to double in value over the last ten years with an 81 per cent average increase.
Semi-detached and terraced homes have remained the most popular types of property purchased over the last ten years. These property types combined accounted for 61 per cent of all home sales in 2010; up from 58 per cent in 2000.
"Although the price of all property types has been boosted by the combination of historically low interest rates and lack of properties available for sale over the past year, it is notable that detached homes have seen the largest average price rise,” said Suren Thiru, Housing Economist with the
Halifax
“Such properties are likely to have benefited from greater demand from those buyer groups currently most able to enter the housing market.
"The changing pattern of homes bought over the past decade highlights some significant socio-economic forces. For example, the rise in the proportion of sales of flats and terraced homes reflects the increasing trend for people to live alone."
OTHER KEY FINDINGS
Moving up the property ladder remains difficult.
• The average price of a detached property is currently 63 per cent above the average UK house price. Terraced properties remain the least expensive property type with an average price that is 17 per cent below the average for all properties.
• The gap between most expensive property types (detached homes) and the least (terraced homes) has narrowed over the past decade from 106 per cent to 98 per cent.
• However, moving up the property ladder has become harder over the past three years as the gap between the least and most expensive property types has risen from 71 per cent in 2007 to 98 per cent in 2010. The average price of terraces fell more during the downturn and has risen by less during the recent recovery.
• Those looking to trade down later in life have seen their potential cash windfall almost double over the past decade. Trading down from a detached home to a bungalow would have earned an average windfall of £102,000 in 2010; an increase of 91 per cent (£48,500) since 2000.
Changes in types of property purchased...
• Detached homes were the only property type to record a fall in its share of all sales since 2000, down from 21 per cent to 15 per cent. This decline was driven by a large drop in the proportion of home movers buying such properties.
• There has been a substantial shift in the type of properties bought by first-time buyers over the past three years. Flats have fallen in popularity, accounting for only 24 per cent of purchases in 2010 compared with 36 per cent in 2007. Purchases of semi-detached homes by first-time buyers over the same period have risen from 20 per cent to 27 per cent.
...reflects a decline in the traditional family unit.
• There has been a decrease in the 'traditional' family unit. The proportion of households in England occupied by married couples has declined from 48 per cent in 2000 to 41 per cent in 2010. Over the same period, the proportion of single person households in England has risen from 30 per cent in 2000 to 33 per cent in 2010.
• The proportion of one bedroom properties built in England nearly doubled during the 'noughties' decade, from 7 per cent on 1999/00 to 13 per cent in 2008/09. Over the same period, the proportion of homes being built with four or more bedrooms dropped from 32 per cent to 17 per cent.
• Although married households remain the most common form of household, single person households are projected to replace married households as the single most prevalent type of household by 2020, according to the latest projection from the Communities and Local Government (DCLG).
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