YORKSHIRE, UNITED KINGDOM -- (Marketwire) -- 10/16/12 -- The value of Britain's detached properties has increased by an average of GBP 642 per month over the past decade, the largest increase in cash terms compared to other property types; according to latest research from the Halifax. Since quarter 2 2002, the average price of a detached property has grown by almost GBP 77,000 (or 38%) to GBP 282,211 today.
Over the past 10 years, the average price of terraced houses has grown by 41% to GBP 151,568. The average price of both semis and bungalows has grown by 37% (to GBP 165,565 and GBP 185,365 respectively). (See Table 1)
Since 2007, property prices are lower, but some not as much as others...
However, since the start of the financial crisis in 2007, bungalows have outperformed all other property types. In the past five years, the average price of a bungalow has fallen by 19% to GBP 185,365. This compares with a 21% decline in the average price of a detached property and a 24% fall in the price of semis. Terraced houses (-28%) and flats (-25%) have been the worst performers.
An increase in property prices, fewer higher LTV mortgages and the higher levels of deposits required has since 2007 impacted many buyers, making it more difficult for first-time buyers (FTB), in particular, to enter the market. This is consistent with terraced houses and flats recording the largest price falls in recent years as these property types are very popular with FTBs. Terraces and flats combined accounted for nearly two-thirds (63%) of all FTB purchases in the first half of 2012.
In contrast, during the five years before the crisis (2002-2007) both terraces (GBP 1,710 per month or 96%) and flats (GBP 1,420 per month or 65%) recorded larger price rises. Circumstances for first-time buyers were easier at this time with a much greater availability of high loan to value mortgages.
Price differences between detached properties and most other property types have widened since the start of the housing downturn
The average price of a detached house is now GBP 117,000 (70%) higher than that for a semi-detached home; a gap that has widened from 66% at the height of the housing market in mid 2007.
Similarly, percentage differences in prices between detached properties and terraces and flats have also widened. The average price for a detached home is 86% higher than for a terraced house compared with 71% five years ago. In 2012, the average price of a detached house is 75% higher than for a flat; five years ago they were 67% higher. (See Table 2)
Martin Ellis, housing economist at Halifax, commented:
"Prices of all property types have fallen over the past five years with the biggest declines for flats and terraced homes. These types are particularly popular with first-time buyers and their sharper price falls probably reflect the difficulties that those looking to enter the market for the first time have been facing. The prices of those property types which are less reliant on first-time buyers, such as bungalows and detached homes, have been more resilient.
"One benefit of the decline in prices has been that flats and terraced houses can now typically be bought for less than GBP 100,000 in some parts of the country. This is a far cry from five years ago when little was available below this price."
OTHER KEY FINDINGS
Semis and terraced housing account for a larger share of house sales since 2007 - at expense of flats and detached homes
Semi-detached and terraced homes remain the most popular types of property purchased. These two properties types combined represent nearly two-thirds (63%) of all home sales; a share that has risen from 55% in 2007. Semi-detached properties have seen their share of all house sales increase from 25% in 2007 to 30% in 2012. The share of terraced homes has risen from 30% to 33% during the period.
In contrast, flats have seen a sharp drop in their share of all sales since 2007, declining from 22% to 15%.
Detached homes have also seen their share of all sales declines; from 18% in 2007 to 14% in 2012.
The increase in the share of sales accounted for by semis and terraced housing may be due to greater difficulty in trading up to detached houses and low transactions levels for flats given low new-build volumes and existing flat owners are often unable to trade up because of little or no equity.
Flats and Terraced properties ideal for buyers with stretched budgets, particularly in the North
A typical flat currently costs less than GBP 100,000 in the North, West Midlands and East Midlands. The average price of a terraced home in the North and North West is also slightly below GBP 100,000.
Semis look good for buyers with a bit more to spend, detached properties command over GBP 200,000 in all regions
GBP 124,000 to GBP 140,000 buys a typical semi-detached home in the North West, Yorkshire & Humber, West Midlands, East Midlands, Wales and Scotland. Prices for semis are much higher in southern England: GBP 161,000 in East Anglia, GBP 184,000 in the South West, GBP 232,000 in the South East and GBP 339,000 in London.
In all regions, the average price for detached properties is over GBP 200,000; those in the North commanding GBP 219,000. In the North West, Yorkshire and the Humber, East Midlands, Wales and Scotland typical detached properties are in the range between GBP 220,000 and GBP 240,000. The average price of a detached property is GBP 579,000 in London and GBP 404,000 in the South East. (See Table 3)
Table 1: UK house prices by property type, 2002-2012
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Q2- Q2 - Q2 - 5 year 5 year 10 year
Property 2002 2007 2012 % change % change %
Type (GBP) (GBP) (GBP) (2002/07) (2007/12) Change
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Terraced 107,327 209,917 151,568 96% -28% 41%
Bungalows 135,757 229,520 185,365 69% -19% 37%
Semi-Detached 120,728 216,872 165,565 80% -24% 37%
Detached 205,224 359,497 282,211 75% -21% 38%
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Flat 130,248 215,439 161,663 65% -25% 24%
All Properties 137,273 241,838 179,170 76% -26% 31%
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Source: Halifax
Table 2: Price Difference between Detached and other Property Types
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Difference Difference Difference % % %
v Detached v Detached v Detached Difference Difference Difference
Properties Properties Properties v Detached v Detached v Detached
Property 2002 2007 2012 Properties Properties Properties
Type (GBP) (GBP) (GBP) 2002 2007 2012
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Terraced -97,897 -149,580 -130,643 91% 71% 86%
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Bungalows -69,467 -129,977 -96,846 51% 57% 52%
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Semi-
Detached -84,496 -142,625 -116,646 70% 66% 70%
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Flat -74,976 -144,058 -120,548 58% 67% 75%
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All
Properties -67,951 -117,659 -103,041 57% 49% 58%
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Source: Halifax
Table 3 - Average House Price by property type and region 2012
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Semi-
Terraced Detached Detached Bungalows Flats
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North 99,629 124,049 218,921 140,547 92,961
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North West 99,457 139,318 236,211 158,300 106,920
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Yorkshire &
the Humber 102,927 124,717 233,083 158,504 104,176
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West Midlands 115,757 138,703 253,042 189,830 96,855
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East Midlands 108,108 129,004 221,277 153,687 92,794
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East Anglia 142,906 160,841 248,195 161,335 102,454
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Greater
London 305,221 339,021 578,885 280,209 256,855
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South East 186,559 232,333 404,018 249,037 141,452
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South West 161,509 183,953 309,876 205,556 133,042
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Wales 104,774 124,319 221,468 156,670 104,338
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Scotland 114,921 139,017 238,111 171,172 111,602
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UK 151,568 165,565 282,211 185,365 161,663
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Source: Halifax
Editors' Notes:
1 All property prices are based on the crude average prices from the Halifax House Price database in quarter two 2012 and quarter two 2007.
Data Sources: all data is from the Halifax House Price database.
Contacts:
Halifax
Customer Services
0845 739 4959
customerrelations@halifax.co.uk
