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Detached property prices rise as desire for space grows – Halifax

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  • 27/10/2020
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Detached property prices rise as desire for space grows – Halifax
The average price of a detached house has increased five per cent since March, compared to a 2.5 per cent increase for flats, signalling a desire for more space since the nation went into lockdown.

 

As of September, the typical price of a detached house stood at £477,098 and the average price of a flat was £147,450.

Data from Halifax showed that terraced and semi-detached properties also increased in value, with rises of four per cent to £200,440 and £286,861 respectively. 

This surge in value for larger properties has resulted in house prices rising faster for homeowners than first-time buyers. 

Homemovers have had to pay an average of £11,615 more to move than they did in March, which represents a four per cent increase over six months.

Meanwhile first-time buyers saw average property prices increase by 2.4 per cent or £4,623 since March. 

Overall, property prices in the UK went up by 3.7 per cent in the six months from March to £249,265. 

 

Across the regions 

The price of a typical detached house has risen across all regions with the strongest growth in the North West as well as Yorkshire and Humberside. In these regions, increases of six per cent were recorded and in cash terms detached properties were over £20,000 more expensive than in March.  

The changes in price were less stark in the South East and Greater London, both rising two per cent. Halifax suggested this was likely due to the stamp duty holiday threshold of £500,000 suppressing huge increases in property value in these areas. 

Semi-detached houses in the West Midlands saw the highest change in price as they rose 4.8 per cent, followed by the South West with increases of 4.6 per cent. 

The South East saw a small rise in the price of semi-detached houses with a 2.3 per cent change, while Scotland recorded a nominal increase of 0.7 per cent.  

The prices of flats tended to fall or rise slowly in the six months from March to September. Flats in the West Midlands declined by 0.1 per cent while in Yorkshire and Humber, they fell by 0.3 per cent. In the South West, the price of a typical flat is 1.6 per cent lower than it was six months ago. 

Russell Galley, managing director at Halifax, said: “We’ve seen a fundamental shift in demand from buyers as a result of increased home working and a desire for more space.  

There’s now evidence that it’s this push for larger properties that has been driving the mini-boom witnessed in the housing market since lockdown restrictions were first eased over the summer. 

He added: “This level of price inflation hasn’t deterred would-be buyers though, as in the three months up to September, we received more mortgage applications from both first-time buyers and homemovers than at any time since 2008.  

However, we continue to sound a note of caution on the longer-term prospects for house price inflation, with the full economic impact of the pandemic likely to be felt more keenly over the winter.” 

 

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