Average house prices across Great Britain rose 1.8% in the year to August, with semi-detached and terraced homes continuing to outperform the wider market, according to the latest house price index from e.surv.
Semi-detached prices increased 2.6% over the year and terraced properties by 2.3%, compared with 1.2% growth for detached homes, while flat prices fell 0.7%. The data points to a market in which buyers are favouring homes that offer more space than a flat, but at a lower price than the typical detached property.
Rob Owens, head of research at e.surv, said: "The strongest price growth is currently concentrated in the middle of the market, with semi-detached and terraced homes outperforming both detached properties and flats nationally. This suggests buyers are becoming increasingly pragmatic, seeking enough space for their needs without stretching their budgets to a larger home.
"Affordability is not the only consideration, however. Buyers are also weighing up the certainty of ongoing costs, including service charges and ground rent. Local housing stock plays an important role too, which helps explain why flats are performing more strongly in established apartment markets such as London and Scotland."
The pattern holds across most regions, though there are exceptions. In Scotland, flats have been the best-performing property type for the past eight months and are now 7.2% higher than a year ago. Flats are also the strongest-performing type in the North East, where annual growth stands at 4.6%, though e.surv notes the series is more volatile and should be interpreted with caution.
In southern England the picture is more subdued. Detached prices in the South East are down 1.0% year-on-year, with a 0.4% fall recorded in the East of England, while semi-detached and terraced homes continue to record stronger growth in both regions.
London presents a distinct picture reflecting its housing stock. Detached prices are 6.0% lower than a year ago, compared with falls of 2.9% for both flats and terraced properties.
