Many people have been searching for bigger properties with more space, so it’s hardly surprising that detached properties have seen the greatest price rise compared to other types of homes.
Detached houses in the UK have risen in price by nearly twice the rate of smaller properties, according to Halifax. The lender says that the cost of a typical detached house in the UK is now £60,000 more than in March 2020. Wales has seen the strongest price growth, with detached properties rising in price by almost 25 per cent.
Buyer demand
Halifax credits the increase to a surge in buyer demand. The analysis is based on data from the Halifax House Price Index and was conducted in partnership with IHS Markit. The data reveals that prices of detached properties have risen at almost twice the rate of the prices of flats.
The average cost of a detached home in the UK reached £425,177 in December 2021, an increase of 17 per cent or £60,556 since March 2020.
This compares to an increase of around nine per cent for a flat since March 2020, with flats rising in price by £13,325 up to an average of £158,992.
Terraced house prices rose by £27,715 to an average of £213,798. Semi-detached properties increased by £36,841 to an average of £280,090 in the same period.
‘Record numbers of moves have been taking place throughout the pandemic, with the demand for detached homes now greater than for any other property type,’ says Russell Galley, Managing Director of Halifax. ‘Competition for those looking to buy an often-larger property is fierce.’
Race for space
With the increase in people working from home, there has been a race for space in the property market. Many people need an extra room for a home office that provides all the comfort and space they need to work productively.
In a survey published last November by online HR resource XpertHR, 97 per cent of companies said they are implementing a hybrid working model. This of course means that a significant number of workers will continue to work from home at least some of the time.
Those who have continued to work from home have also been able to move to further out and buy bigger properties for less than they’d pay in a more central location.
‘As employers began to crystalise longer-term plans for home and hybrid working, buyers have been able to consider homes further afield as the need to commute falls away, with properties previously considered too remote now giving families extras like garden rooms and home offices,’ adds Galley. ‘This trend means Wales, with its beautiful countryside and lower relative property prices saw the strongest growth in detached homes over the past two years.’