First-time buyers are turning to terraced homes in greater numbers, according to new figures. However, they are in danger of being priced out of buying flats as the average price of a flat has leapt by 48 percent in just five years – the equivalent of £1,251 every month.
Research from the Halifax says six in every 10 property sales in the UK in the last year were terraced or semi-detached properties.
Terraced homes have seen their average prices rise by £60,482 (41 percent) since 2013. They remain the most popular choice of property for those seeking to get on to the property ladder for the first time – more than a third of first-time buyers buy a terrace as their first purchase – while terraces are also the most affordable property across the UK.
When taking London out of the UK equation, flats are the most affordable option at an average price of £166,386, with terraced homes selling on average for £184,529.
The only UK region where everyone, not just first-time buyers, can buy a terraced home for less than the stamp duty threshold of £125,000 is the north. There the average terrace sells for £116,740. In 2013, there were seven regions where the average price for a terrace was less than £125,000.
Russell Galley, Halifax’s managing director, said: “Although flats have recorded greater price gains over the past five years than any other property type, semi-detached and terraced homes have remained the most popular choices for homebuyers.
More than a third of first-time buyers are still choosing terraced homes as their first step on to the property ladder, but we’re starting to see more of them choose detached houses, as the number has crept up in recent years.”