Terraced housing is the most valuable long term

Recent research by Halifax bank has revealed that over the last decade terraced housing has been the type of housing to have risen the most in value. The data collected by the bank has said that the price of the average terrace house has increased by nearly 70% and that home owners have seen around £120 added to the value of their house, every week, for the last ten years.

The second largest increase has been seen by bungalows and the third largest by semi detached properties. Overall the average price of a UK house has risen by over 50%. Even though terrace properties have seen a large increase in prices they still remain the most affordable type of housing in the UK. The price of an average terrace costs, 15% less than the average property price in the country and nearly 45% less than the price of the average detached home.

As well as seeing their prices increase the demand for them has seen the most significant increase of all properties in the UK. Their sales have risen the most in the last decade. Detached properties were the only category to see a fall in their share of sales dropping a significant 7%. This decline was due to many people not moving into detached homes.

Currently terrace and semi detached homes are the most popular types of housing, accounting for over 60% of the market. Flats were the type of property that saw the least growth in price since 2001, although they still saw their values increase by nearly 50%. Most analysts suggest that the reason for this relatively small growth is due to an over supply of the properties.

The study has tracked eleven regions across the UK and of these in eight of them it was found that terrace housing had the largest price increases. In nine regions detached properties saw the smallest growth of all property types.

In Humber and Yorkshire it was found that the biggest rise in house prices occurred, for all property types. London was at the other end of the spectrum and saw the smallest gains in prices. This rise in property values is good news for people who have been planning to trade down. Trading down is a common practice where people move into smaller properties in order to get the cash for the difference in value between the two properties. In the last ten years, owners have found that they will get an additional £22,500 on average.

Suren Thiru is an economist at Halifax and has commented, “Terrace houses have seen this rise because the rise in the value of properties in the 2000s meant that many people simply could not afford higher value homes.”