The pandemic property boom has been driven by a surge in demand for larger homes, new research has revealed.
The average value of a detached home in Britain has risen at almost twice the rate for flats, according to the data from Halifax and IHS Markit.
Buyers can expect to pay on average £425,177 for a detached property, which is an increase of £60,556 or 17 per cent since March 2020.
Buyers can expect to pay on average £425,177 for a detached property, which is an increase of £60,556 or 17 per cent since the March 2020
It compares to an increase of around 9 per cent for a typical flat during the same period, where values have risen on average £13,325 to an average of £158,992.
At the same time, the average price of a terrace property has risen 15 per cent or £27,715 to £213,798, while semi-detached also rose 15 per cent or £36,841 to £280,090.
| All Houses All Buyers | UK | Flat | Terraced | Semi-Detached | Detached |
|---|---|---|---|---|---|
| % Change (since Mar ’20) | 15.40% | 9.10% | 14.90% | 15.10% | 16.60% |
| Price Change (since Mar ’20) | £33,820 | £13,325 | £27,715 | £36,841 | £60,556 |
| Average price Dec 2021 | £276,091 | £158,992 | £213,798 | £280,090 | £425,177 |
| Source: Halifax/IHS Markit | |||||
The data also highlighted the widening of the gaps between each type of home, with flat owners expected to spend an extra £54,806 to upsize to a typical terrace house, compared to £40,416 in March 2020.
At the same time, those currently in a terrace would need a further £66,292 to own a semi-detached home, compared to £57,166 in March 2020.
Meanwhile, home movers hoping to switch from a semi-detached to a detached property need an additional £145,087, compared to £121,371 in March 2020.
| % Change (since Mar ’20) | All | Flat | Terraced | Semi-Detached | Detached |
|---|---|---|---|---|---|
| East of England | 13.00% | 7.40% | 14.20% | 14.80% | 14.30% |
| Northern Ireland | 14.30% | -2.40% | 15.20% | 16.70% | 13.40% |
| South West | 18.40% | 10.90% | 19.00% | 19.50% | 20.20% |
| London | 6.40% | 0.70% | 6.80% | 7.60% | 12.40% |
| Scotland | 12.10% | 9.60% | 14.20% | 13.70% | 16.30% |
| West Midlands | 14.60% | 7.10% | 12.60% | 15.50% | 17.40% |
| East Midlands | 15.50% | 12.10% | 16.50% | 17.50% | 19.00% |
| North West | 18.20% | 13.40% | 18.80% | 17.00% | 21.90% |
| Wales | 21.90% | 11.70% | 25.10% | 21.20% | 24.40% |
| North East | 14.40% | 14.30% | 19.80% | 11.80% | 15.50% |
| South East | 13.10% | 7.40% | 13.70% | 13.80% | 15.40% |
| Yorkshire | 16.50% | 4.30% | 15.40% | 17.00% | 18.30% |
| Source: Halifax/IHS Markit | |||||
Wales and the North West saw the greatest increase in detached home prices, up 24.4 per cent and 21.9 per cent respectively.
The most expensive detached homes are in London, at an average £910,568. The 12.4 per cent increase is almost double the average of all property types in the capital.
Russell Galley, managing director, Halifax, said: ‘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, meaning the competition for those looking to buy an often larger property is fierce.
‘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.
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.’
| East of England | All | Flat | Terraced | Semi-Detached | Detached |
|---|---|---|---|---|---|
| % Change (since Mar ’20) | 13.00% | 7.40% | 14.20% | 14.80% | 14.30% |
| Price Change (since Mar ’20) | £36,767 | £13,340 | £34,669 | £45,351 | £63,141 |
| Average Price Dec 2021 | £319,447 | £192,721 | £279,087 | £352,699 | £505,379 |
| Northern Ireland | All | Flat | Terraced | Semi-Detached | Detached |
| % Change (since Mar ’20) | 14.30% | -2.40% | 15.20% | 16.70% | 13.40% |
| Price Change (since Mar ’20) | £21,448 | -£2,327 | £14,027 | £22,012 | £25,600 |
| Average Price Dec 2021 | £170,946 | £94,922 | £106,105 | £153,917 | £217,226 |
| South West | All | Flat | Terraced | Semi-Detached | Detached |
| % Change (since Mar ’20) | 18.40% | 10.90% | 19.00% | 19.50% | 20.20% |
| Price Change (since Mar ’20) | £44,773 | £17,038 | £38,716 | £49,973 | £76,380 |
| Average Price Dec 2021 | £287,774 | £173,502 | £242,285 | £306,171 | £454,133 |
| London | All | Flat | Terraced | Semi-Detached | Detached |
| % Change (since Mar ’20) | 6.40% | 0.70% | 6.80% | 7.60% | 12.40% |
| Price Change (since Mar ’20) | £31,724 | £2,657 | £33,159 | £44,891 | £100,525 |
| Average Price Dec 2021 | £525,351 | £371,744 | £520,359 | £635,422 | £910,568 |
| Scotland | All | Flat | Terraced | Semi-Detached | Detached |
| % Change (since Mar ’20) | 12.10% | 9.60% | 14.20% | 13.70% | 16.30% |
| Price Change (since Mar ’20) | £20,795 | £9,789 | £18,433 | £23,357 | £39,783 |
| Average Price Dec 2021 | £192,988 | £112,075 | £148,224 | £193,975 | £283,214 |
| West Mids | All | Flat | Terraced | Semi-Detached | Detached |
| % Change (since Mar ’20) | 14.60% | 7.10% | 12.60% | 15.50% | 17.40% |
| Price Change (since Mar ’20) | £29,778 | £8,625 | £20,532 | £33,265 | £57,685 |
| Average Price Dec 2021 | £234,263 | £129,851 | £184,061 | £247,881 | £389,553 |
| East Midlands | All | Flat | Terraced | Semi-Detached | Detached |
| % Change (since Mar ’20) | 15.50% | 12.10% | 16.50% | 17.50% | 19.00% |
| Price Change (since Mar ’20) | £30,275 | £13,536 | £24,346 | £33,919 | £57,186 |
| Average Price Dec 2021 | £225,106 | £125,563 | £171,686 | £227,336 | £358,441 |
| North West | All | Flat | Terraced | Semi-Detached | Detached |
| % Change (since Mar ’20) | 18.20% | 13.40% | 18.80% | 17.00% | 21.90% |
| Price Change (since Mar ’20) | £32,591 | £14,070 | £24,426 | £31,917 | £63,229 |
| Average Price Dec 2021 | £211,954 | £118,979 | £154,308 | £219,294 | £351,887 |
| Wales | All | Flat | Terraced | Semi-Detached | Detached |
| % Change (since Mar ’20) | 21.90% | 11.70% | 25.10% | 21.20% | 24.40% |
| Price Change (since Mar ’20) | £36,917 | £11,570 | £30,111 | £34,639 | £62,688 |
| Average Price Dec 2021 | £205,579 | £110,318 | £149,966 | £197,768 | £319,492 |
| North East | All | Flat | Terraced | Semi-Detached | Detached |
| % Change (since Mar ’20) | 14.40% | 14.30% | 19.80% | 11.80% | 15.50% |
| Price Change (since Mar ’20) | £20,162 | £11,527 | £20,071 | £17,666 | £37,373 |
| Average Price Dec 2021 | £159,694 | £92,214 | £121,187 | £166,876 | £278,863 |
| South East | All | Flat | Terraced | Semi-Detached | Detached |
| % Change (since Mar ’20) | 13.10% | 7.40% | 13.70% | 13.80% | 15.40% |
| Price Change (since Mar ’20) | £43,298 | £15,502 | £38,704 | £49,203 | £78,220 |
| Average Price Dec 2021 | £374,454 | £223,610 | £320,944 | £404,648 | £586,781 |
| Yorkshire | All | Flat | Terraced | Semi-Detached | Detached |
| % Change (since Mar ’20) | 16.50% | 4.30% | 15.40% | 17.00% | 18.30% |
| Price Change (since Mar ’20) | £27,192 | £4,708 | £19,442 | £29,624 | £50,192 |
| Average Price Dec 2021 | £192,210 | £114,535 | £146,081 | £203,805 | £324,581 |
| Source: Halifax/IHS Markit | |||||
North London estate agent Jeremy Leaf said: ’Soaring demand for detached homes is not surprising as we are seeing buyers prepared to stretch themselves to purchase properties which they regard as for the longer term, rather than settling for smaller houses or flats.
These buyers are often using money saved during lockdown by not going on holiday or other spending, to contribute towards their deposit. They are also taking advantage of continuing low interest rates even though the threat of higher repayments and inflation is looming.
‘Detached homes have long been the pinnacle in terms of what people aim for when buying property. They are popular because they offer flexibility, privacy, control and independence, which isn’t always the case with semi-detached or terraced properties where there is an element of shared space or boundaries, increasing the risk of conflict.
‘Price growth has been strongest in Wales because often affordability is greater in those markets in the first place. We have noticed the drift from the centre of towns and cities to the suburbs, country and coastal areas as people get more accustomed to hybrid working and not having to spend as much time in the centre. They are looking for higher-quality outside space and the ability to work comfortably from home.’
Separate research by Coutts found that demand has also been high for luxury leafy lodgings in the capital.
It said that sales for super prime homes worth £10million or more jumped from 56 in 2020 to 106 in 2021.
Peter Flavel, of Coutts, said: ‘For many investors these prime and super prime properties provide the opportunity to put funds into assets that offer the space they need as hybrid living continues to influence lifestyle choices.’
