Semi-detached and terraced homes are outperforming the wider housing market as affordability pressures encourage buyers to seek a compromise between price and space.
The latest e.surv house price index shows average property prices across Great Britain increased by 1.8% in the year to August, but growth varies significantly depending on property type.
Semi-detached homes record the strongest national performance, rising by 2.6% annually, followed by terraced properties at 2.3%.
By comparison, detached house prices are up by just 1.2%, while flats are the only property type to record an annual decline, falling by 0.7%.
AFFORDABILITY SQUEEZE
e.surv suggests the figures point towards buyers increasingly targeting the middle of the market, seeking more space than typically available in a flat without stretching their finances to a detached home.
Rob Owens (main picture, inset), Head of Research at e.surv, says: “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.”
Owens adds that affordability is not the only factor, with buyers increasingly considering ongoing costs such as service charges and ground rent.
REGIONAL DIVIDE
The national picture masks significant regional differences.
Detached homes are struggling particularly in higher-value southern markets, with prices down 1% annually in the South East and 0.4% in the East of England.
London records an even sharper 6% annual decline for detached homes. Flats and terraced properties in the capital are both down 2.9%.
Scotland bucks the wider trend for flats, however. Apartment prices have been the country’s best-performing property type for the past eight months and are now 7.2% higher than a year ago.
Flats also lead growth in the North East, increasing by 4.6% annually, although e.surv cautions that the regional series is more volatile.
