Property

Buyer demand for more space sees surge in price of larger homes

Property Reporter
|
28th October 2020
Detached House

New research has revealed that the cost of the largest types of properties in the UK is outpacing the smallest homes by around twice the rate.

Halifax data shows that since March this year, through the period of lockdown and over the summer into early autumn (September 2020), prices for typical UK detached properties increased by over 5%.

This compares to an increase of just 2.5% for a typical flat over the same period and gains of around 4% for terraced and semi-detached properties.

Unsurprisingly given the trends in prices by property type, homeowners have found that prices are increasing at a faster rate than first-time buyers. For those buyers moving between houses, prices have typically increased by 4% between March and September. That compares to a much more modest increase of 2.4% for first-time buyers.

Russell Galley, Managing Director, 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 have 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 home movers 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.”

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