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Semi-detached homes have proven the most profitable residential property type in the UK, with price growth of 35.07 per cent over the last 11 years, from the average house price of £162,201 after the financial crash to as much as £291,087 in 2019, according to a recent report from Springbok Properties.

There has been a similar growth across other property types too, with the average price of terraced homes increasing by 33.93 per cent, from £139,195 in 2008 to £186,418 in 2019, while flats have seen a growth of 32.78 per cent over the same period, from £150,878 to £200,341 this year.

Detached houses followed closely behind during this period, with prices increasing by 32.61 per cent from £262,199 to £347,706, according to Springbok Properties.

National Landlord Investment Show – MPU

National variation

In England and Wales, semi-detached homes are the most profitable property type to invest in, with those in England showing greater growth than the UK average, at 39.87 per cent; in Wales, the increase in value is 24.18 per cent, since September 2008.

In Scotland however, detached homes have shown greater growth than any other property types, rising in value by 21.12 per cent. Meanwhile, in Northern Ireland, detached properties declined in value by 15.9 per cent, which is better than other property types, which were found to have performed even worse.

Regional variation

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 better for investment, with average prices up 75.9 per cent since September 2008.

Terraced homes are the best investment around the periphery of the capital, up 68.15 per cent, while in Inner London, semi-detached houses have shown the fastest price growth, of 82.33 per cent.

The next-best region for semi-detached house price growth was the East of England, with an increase in value of 59.82 per cent, followed by the South East at 57.42 per cent, the South West at 40.93 per cent, the East Midlands at 36.37 per cent, the West Midlands at 33.07 per cent and the North West at 24.1 per cent.

Yorkshire and the Humber followed, with price growth of 21.95 per cent, while the North East experienced an increase of just 4.98 per cent since 2008, according to Springbok Properties.

Best performing areas

Haringey has been the best performing area in London since the financial crisis when it comes to price gains for semi-detached homes, flats and terraces, while Hackney has been the best for detached properties.

Outside of London, Cambridge has been the best place for investing in all property types since 2008, while County Durham is at the other end of the scale, taking the position as the worst area for UK house price growth since 2008.

Values driven by demand

Shepherd Ncube, chief executive officer of Springbok Properties, believes 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 the location.

Mr Ncube commented: “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 added: “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.”

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Steven Taylor
Steven reports on the daily churn of the property news cycle, often reporting on the stories you may have missed during the week. He covers a range of topics, including market sentiment, new findings and announcements by policy-makers.

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    1 Comment

    1. Of the Semi us the most desired property type.
      Most people aspire to a totally detached property but they are sufficiently realistic to know they won’t achieve that.
      So the Semi is the best they can achieve.
      Anything less than that is something people have accept.
      A Semi provides maximum domestic flexibility.
      From a single person taking in lodgers to a large family.
      Ideally there would be 4 bedrooms but the usual is 3; but most Semi owners will go for a loft extension with en-suite.
      Personally I aspire to Semi ownership but can only afford a terrace.
      The Semi is by far the most effective property for many types of domestic occupation and also happens to be fairly numerous.
      They effectively created Suburbia which is where most people want to live.
      The problem now is that most new-build Semi’s are the same size as a terraces.

      I wouldn’t even consider new-build.
      The Semi’s built prior to the 1980’s are of excellent quality.
      Especially the ones built in the 1930’s.
      As a very flexible form of a property type there is little than can beat the Semi.
      With PD there is usually great scope to further expand the size of the Semi.
      So effectively you can achieve the same size as a detached but just have to accept you will have a close neighbour the other side of the party wall!
      Not really a problem for most Semi owners.

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