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House price rise for terraces of £118 a week

Strong demand for terraced houses raises price 68% over decade, as buyers are priced out of detached home market

Terraced houses increased in value by £118 a week over the past decade, according to research from Halifax bank.

The average price of a terraced property increased by more than that of any other type of home, as buyers were priced out of the top end of the market, the bank said. It said the price of a terrace rose by 68.4% to £151,332 in the 10 years to the second quarter of 2011. Bungalows saw the next biggest rise in value – by 67.9% to £187,167 followed by semi-detached properties, with a 62.4% increase to £164,970.

The value of detached homes increased 56%, but flats and maisonettes did not increase as much, with a 49% rise to £163,825 after the market was flooded with a glut of properties.

Demand for terraces has been strong because they are the most affordable type of property, while more expensive detached homes have seen their share of sales drop, the report showed.

Despite recent price hikes, a terraced home is 45% cheaper than an average detached home, which costs £273,173.

Halifax housing economist Suren Thiru said: “Although all property types have recorded significant price increases overall during the past decade, terraced homes have seen the biggest growth.

“Demand for such properties is likely to have been supported by their relatively favourable levels of affordability over the period.

“The rapid house price rises during much of the 2000s priced many potential home movers out of the upper end of the UK housing market.”

Terraced properties saw their share of all house sales rise by more than any other property over the decade, increasing to 34% from 31%. Detached homes were the only type of property to see a drop in their share of sales, declining to 14% from 21%, driven by a large drop in demand from home movers.

Scotland and Yorkshire and Humber accounted for the biggest price rises across all property types over the decade, while London saw the smallest gains. © 2011 Guardian News and Media Limited or its affiliated companies. All rights reserved. | Use of this content is subject to our Terms & Conditions | More Feeds