Detached property prices rise 10% year-on-year

The average price paid for a detached property has risen by 10% year-on-year, according to data collected by Halifax.

The average cost of a detached property in the UK reached £486,595 in December 2020.

In monitory terms, the 10% increase represents a rise of £43,364 since December 2019.

Meanwhile, the average price paid for a flat has risen by 3.19%, equating to £4,533, and terraced homes rose by £11,178 (5.84%).

In addition, semi-detached properties became £16,930 more expensive, an increase of 6.26%.

The data also outlined that flat owners can expect to spend an extra £55,823 to upsize into a typical terraced house, while those currently in a terraced property would need a further £84,774 to own a semi-detached home.

However, homemovers intending to switch from a semi-detached to a detached house need an additional £199,282.

Overall, the price of a detached home in the UK has trebled in two decades.

In 2000, buyers could secure an average detached property for £164,827, which rose to £486,595 in 2020.

The past five years however have seen the sharpest price increases for those upsizing from a semi-detached to a detached home.

In 2015, it cost around £148,540 to upsize from a semi-detached property to a detached home.

Russell Galley, managing director at Halifax, said: “As many continue to work from home, this has led to a significant increase in demand for bigger properties, which has likely driven the boost in price we’ve seen in detached homes versus other property types.

“Over the past six months, the average UK house price has risen by 6.3%, 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.”

“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.”