Semi-detached homes have outperformed other types of residential property in the UK in terms of price growth since the financial downturn in 2008, according to new research.
This type of property has seen price growth of 35.07% from the average house price of £162,201 following the financial crash to £291,087 today, the study from estate agency Springbok Properties shows.
But other property types are not that far behind. The average price of terraced homes has increased by 33.93% from £139,195 to £186,418, while flats have seen a growth of 32.78% from £150,878 to £200,341 and detached houses prices increased by 32.61% from £262,199 to £347,706.
In England and Wales specifically, semi-detached homes are still the most profitable property type to invest in, with those in England showing greater growth than the UK average at 39.87%, while in Wales the increase in value is 24.18% since September 2008.
In Scotland and Northern Ireland, however, detached homes have shown greater growth than any other property type, with those in Scotland rising in value by 21.13%. In Northern Ireland, detached properties are the worst performer, down 15.9%.
Springbok also looked at growth across regions in the UK and found that semi-detached houses are the most profitable property type in almost all regions, with the exception of London where terraced homes are best for investment, up 75.9% since the end of the financial crash.
When looking at inner and outer London, terraced homes are the best investment across the peripherals of the capital, up 68.15%, while in inner London, semi-detached houses have shown the largest degree of price growth of 82.33%.
The next best region for semi-detached house price growth was the East of England, with an increase in value of 59.82%, followed by the South East at 57.42%, the South West at 40.93%, the East Midlands at 36.37%, the West Midlands at 33.07% and the North West (24.1%. Yorkshire and the Humber followed with a price growth of 21.95%, while the North East lagged behind at 4.98%.
When looking at London at borough level, Haringey has been the best performing since the financial crisis when it comes to semi-detached homes, flats and terraces, while Hackney has been the best for detached properties.
Outside of London, Cambridge has been the best area for investing in all property types since the crash, and at the other end of the scale is County Durham, which has been the worst area of the UK for house price growth since 2008.
According to Shepherd Ncube, chief executive officer of Sprinkbok Properties, there has been a steady level of growth over the last decade, with semi-detached homes standing out as the most profitable property type to invest in pretty much regardless of location.
‘This is largely due to a number of factors. They bridge the gap between first time buyers and second or third rung buyers and can provide the additional space needed for the next stages of life without the price premium that a detached property will often command,’ he said.
‘They also make the ideal property for a buy to let landlord who wants the balance between an affordable investment option but with the space to maximise rental income. In many built up areas, they are also often more prevalent than detached homes and so present the best option for many looking to move from a smaller terraced home or flat. As a result of this demand, prices for this property type have performed that bit better across the UK,’ he added.