Detached house prices rise, as buyers prioritise space
The average price of a detached property has risen by more than 5% since March, according to Halifax.
That’s twice the rate of growth of flats, which have increased by just 2.5% over the same period.
The significant increase in detached house prices since lockdown marks the greatest rise of all property types, with gains of around 4% recorded for terraced and semi-detached properties.
All regions have seen increases in the average price of a typical detached property, but the North West and Yorkshire & Humberside have seen the strongest house price inflation, at over 6%.
They are followed by the East Midlands and the South West, said Halifax.
In cash terms, the average price of detached houses in all four of these regions since March has increased by over £20,000.
It’s a different picture in the south of England. The South East and Greater London have both seen property price inflation for detached homes at around 2%, with growth restricted in part by the stamp duty holiday threshold of £500,000.
Russell Galley, managing director of 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.
“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.”