15:50 PM, 27th September 2011, About 10 years ago
Property investors with terraced houses have banked £118 per week as prices have outpaced all other type of home over the past 10 years.
The value of terraced houses has increased by around two-thirds (68.4%) between 2001 and 2011, according to a study by the Halifax, compared with an average of 53% across the market.
Average terraced house prices soared from £89,843 to £151,332, bungalows were just behind (67.8%), followed by semi-detached homes (62%).
Despite returning the fastest price increases, terraced houses are the most affordable type of property.
They are still 15% below the overall average house price of £177,740 and 45% less than the average detached home price of £273,173.
Terraced homes took most of all house sales in the decade, rising from 31% in 2001 to 34% in 2011.
Detached homes were the only property type to drop their share of sales since 2001, falling from 21% to 14%.
The price of flats has fared the worst for investors over the past decade.
Values went up by half (49%) but remained short of price rises for houses and bungalows.
Since 2001, the number of flats built doubled as a proportion of all homes in England – up from 20% in 2001 to 50% in 2009. The proportion has fallen back to 35% to reflect over supply before the credit crisis.
Suren Thiru, Halifax housing economist, said: “Although all property types have recorded significant price increases overall during the past decade, terraced homes have seen the biggest growth.
“Demand for such properties is likely to have been supported by their relatively favourable levels of affordability over the period. The rapid house price rises during much of the 2000s priced many potential home movers out of the upper end of the UK housing market.”
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.