Detached houses lead price gains

Halifax figures show the average price of a detached home rose from £266,060 in the second quarter of 2009 to £299,295 in the second quarter of 2010.

This rise, averaging 13 per cent, is thought to have been driven partly by a growing shortage of new family homes following the decision by builders in many areas to focus on flats and smaller homes.

By contrast, says Halifax, average prices for all other property types rose only 8–9 per cent in the same period in 2009–10.

In the first decade of the new century, says the lender, the proportion of one-bedroom homes built in England almost doubled – going from seven per cent in 1999–2000 to 13 per cent in 2008–09.

However, the proportion of new homes built with four bedrooms or more sank from 32 per cent of the total in 1999–2000 to only 17 per cent in 2008–09.

Halifax housing economist Suren Thiru said: “Although the price of all property types has been boosted by the combination of historically low interest rates and a lack of properties available for sale over the past year, it is notable that detached homes saw the largest average price rises.”

“These properties are likely to have benefited from greater demand from those buyer groups currently most able to enter the 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.

However, since 2000, the largest percentage rises in value have been enjoyed by owners of terraced houses (up 110 per cent) and bungalows (up 109 per cent), with detached homes trailing behind (102 per cent).

This decade has also seen a marked drop in the number of detached homes sold: They accounted for 21 per cent of sales in 2000, and only 15 per cent in 2009.

Now flats have gone out of fashion, too, down from 36 per cent of sales in 2007 to 24 per cent in 2010. Also, purchases of semi-detached homes over the same period rose from 20 per cent to 27 per cent of total market turnover.

Overall, first-time buyers in the decade from 2000 until 2010 accounted for 42 per cent of terraced homes purchased; for 27 per cent of semi-detached homes; for 24 per cent of flats and for five per cent of detached houses.