Detached property prices soar by over £40k making upsizing ‘more expensive than ever’
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The past year has seen the property market experience a rollercoaster ride. Lockdown last year saw the property market grind to a halt as the UK was forced to remain at home. Since then, the stamp duty holiday and the reopening of the property market has seen house prices surge and remain elevated.
The last two months saw property prices drop off slightly but they have since risen once again as demand continues to grow and demand remains low.
But those looking to upsize to a detached property can now expect to pay around 10 percent more than they did a year ago, according to new data from Halifax.
The average cost of a detached property in the UK reached a whopping £486,595 in December 2020.
This is an increase of £43,364 (10 percent) since December 2019.
Other property types didn’t see such a dramatic surge in prices.
Flats saw an increase of just £4,533 (3.19 percent) with the average flat now costing around £146,717.
Terraced houses saw prices rise by £11,178 (5.84 percent) to £202,540 while semi-detached property prices rise by 6.26 percent (£16,930) to £287,313.
Russell Galley, Managing Director at Halifax, said people working from home during lockdown has seen buyers looking for bigger properties which boosted prices even more for detached homes.
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He continued: “Over the past six months, the average UK house price has risen by 6.3 percent, making it the market’s best half-year performance since early 2007.
“While this increase is good news for the market overall, it has further widened the rungs on the housing ladder – particularly for those looking to upsize to a detached property – making the jump more expensive than ever before.”
This means those looking to upscale from their current property now have to pay a lot more than they did last year.
Flat owners will now have to find on average an extra £55,823 to upsize to a terraced house.
Meanwhile, those with a terraced property will need to scrape together a further £84,774 to own a semi-detached home.
But shockingly, buyers looking to switch up from a semi-detached property to a detached house will need to shell out £199,282 – almost £200,000.
Mr Galley explained that while this is good news for the property market, it now means there is a bigger gap for those looking to upsize.
He added: “While price increases are good news for the market overall, this has impacted homemovers looking to upsize, as the gaps between each rung of the housing ladder have widened significantly.
“Those who have been unable to take a step up the housing ladder in the last year or so may find it harder to trade up than ever before.”
According to Halifax data, the price of a detached property in the UK has trebled over the last 20 years.
Back in 2000, a typical detached property sold for an average of £164,827.
Now, buyers can expect to pay on average £486,595.
The last five years has seen prices rise the most with a detached property costing on average £366,525 in 2015.
This means the price of a detached house has risen by over £120,000 on average in just five years.
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