Find out which regions are seeing the fastest sales and why this property type is in high demand
Two-bedroom terraced homes are the fastest-selling property type in England and Wales, according to new research from property website Zoopla.
These homes typically secure a sale in just 27 days, compared to the national average of 32 days, marking a return to pre-pandemic selling times.
Zoopla’s time-to-sell metric measures the period between a property’s initial listing and the agreement of a sale, subject to contract. It does not account for the additional months often required to finalise the transaction. Scotland was excluded from the analysis due to its different property selling system, which tends to expedite sales.
While two-bed terraced homes have traditionally sold quickly in more expensive regions like London and the East of England, they are now the fastest-selling property type in more affordable areas as well. This shift, Zoopla said, is likely driven by higher borrowing costs, which are influencing buyer preferences.
In the past three months, these homes were the fastest-selling property type in six of the 10 regions in England and Wales, with the quickest sales recorded in Yorkshire and The Humber (24 days), London (25 days), and the West Midlands (26 days).
The popularity of two-bed terraces is evident, with 60% of sales for this property type being agreed within 30 days of listing. Their appeal is heightened by their relative scarcity, as they comprised only 7% of listings in the past three months, creating competition among buyers.
The Zoopla research also shows these homes attract a diverse range of buyers. For first-time buyers, they offer good value for money, with the average asking price for a two-bed terrace at £200,000, compared to £275,000 for a two-bed flat.
Conversely, four-bedroom detached houses are currently the slowest-selling property type nationally. Although flats usually take longer to sell, they are the fastest-moving property type in the North West, particularly in urban areas like Manchester, Liverpool, and Warrington.
Zoopla also noted that selling times generally fluctuate with the seasons, with homes typically selling a week faster in the first half of the year. It anticipates that fewer homes will achieve a sale within 30 days during the second half of 2024.
Current mortgage rates, which have fallen to an average of 4.5% to 5%, are supporting market activity. A potential reduction in the base rate later this year could further boost buyer demand and accelerate the pace of sales.
Pricing remains a critical factor in selling times, Zoopla added. Homes that have had to undergo an asking price reduction of 5% or more are taking an average of 70 days to agree a sale — more than double the overall average.
“The average UK home sells in 32 days after being listed for sale,” said Izabella Lubowiecka (pictured), Senior Property Researcher at Zoopla. “This is faster than a year ago as market activity improves. Larger houses and flats take an extra week to find a buyer. Serious sellers who want to sell quickly should discuss this with their agent, who can advise on the best price to sell more quickly.”
Marc von Grundherr, director at independent lettings and sales agency Benham and Reeves, highlighted the growing demand for terraced homes in today’s market, stating that “they tend to get snapped up very quickly for a number of reasons.”
He explained that terraced homes strike a balance between apartment living and larger properties, offering the same number of bedrooms as most apartments but with the added benefits of more living space and outdoor areas. This makes them an attractive option for those looking to transition to a more family-friendly home.
Von Grundherr also noted that terraced homes are often located in central areas of major towns and cities, unlike larger semi-detached and detached homes, which are typically found on the outskirts. He further pointed out the affordability factor, especially in light of recent mortgage rate increases.
“With mortgage rates having increased notably in recent years, this appeal has only grown stronger as buyers have found themselves more restricted with regard to their purchasing power in the market,” von Grundherr said.
However, he cautioned that limited stock of terraced homes, combined with their high appeal, has led to a very fast-moving market.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
