The popularity of terraced houses has grown over the last year, according to Norwich & Peterborough.

The lender said that the number of mortgages taken out on terraced homes increased by 2% in 2004 while mortgages on detached properties fell by 3%.

However, detached properties are still the most popular with homebuyers, followed by semi-detached and then terraced.

Spokesperson Stephen Penlington, said: ≥Terraced properties made a comeback in 2004. This type of property tends to keep its attraction because they remain relatively affordable. Smaller terraces keep a steady pace compared to detached properties, which become less affordable when house prices rise as much as they did last year.≤