Detached homes have kept their value best over last five years
New research from home.co.uk suggests that it is detached homes that have best kept their value since 2007, with detached properties increasing in price by 0.3% compared to a general drop of more than 5% in all UK property.
All other property types have lost value – semi-detached (-11.6%), terraced (-15.1%) and flats faring worst with an average fall of 17.1%.
Doug Shephard, director at Home.co.uk, said: “Over the last 5 years restricted mortgage lending, especially to first-time buyers, has put immense pressure of the prices of flats and smaller houses. Demand from buyers has fallen drastically in the Northern regions, Wales and Scotland whilst buy-to-let purchasers looking to maximise rental yields have been negotiating strongly on completion prices. The ongoing challenge of securing finance combined with the fear of negative equity has damaged the confidence of both first-time and next-time buyers.
“However, at the upper end of the market, so-called ‘home movers’ have been a safer bet for the banks. They are typically older, have more established careers and already own considerable equity. This market sector has been more ready and able to move, and this has helped maintain higher-end prices. Of course, if inflation is taken into account, the value of all property types has fallen in real terms. That aside, until affordability and lending for first-time buyers improves, we expect that detached homes will continue to outperform the rest of the market.”
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