Double-digit rise in detached house prices last year
Detached house prices rose up three times faster than flats last year, growing by 10% in the 12 months to December, according to Halifax.
The lender said that the average cost of a detached property in the UK reached £486,595 in December 2020, an increase of £43,364 (10%) since December 2019.
It compared with an increase of just £4,533 (3.19%) for flats, which now have an average price tag of £146,717. Terraced houses rose by £11,178 (5.84%) to £202,540, while semi-detached properties rose £16,930 to £287,313.
Homemovers looking to upgrade from a semi-detached home to a detached property now pay an extra £200,000.
In fact, Halifax found that the price of a detached home in the UK has trebled in two decades. In 2000, buyers could secure a typical detached property for an average of £164,827, which jumped to £486,595 in 2020.
Russell Galley, managing director of Halifax, said: “As many continue to work from home, this has led to a significant increase in demand for bigger properties, which has likely driven the boost in price we’ve seen in detached homes versus other property types.
“Over the past six months, the average UK house price has risen by 6.3%, making it the market’s best half-year performance since early 2007. While this increase is good news for the market overall, it has further widened the rungs on the housing ladder – particularly for those looking to upsize to a detached property – making the jump more expensive than ever before.”
From flat to house
Flat owners can expect to spend an extra £55,823 to upsize into a typical terraced house, while those currently in a terraced property would need a further £84,774 to own a semi-detached home.
Russell added: “While price increases are good news for the market overall, this has impacted homemovers looking to upsize, as the gaps between each rung of the housing ladder have widened significantly. Those who have been unable to take a step up the housing ladder in the last year or so may find it harder to trade up than ever before.”