What Property Type Has Offered Biggest Value Increase?

Thursday, June 24, 2021

When you are looking for a new home, the vast majority of prospective buyers have a simple list of things which matter. You need enough space, you might need a certain amount of rooms, and you want to be close to certain places. Schools and transport hubs are often crucial elements to consider when looking to move home.

However, if you keep an eye on the long-term, you might also think about the value of property, and what is set to increase. If you can generate a significant return on your initial investment, you will have more freedom to move in the future. You will also feel very satisfied about the decision you made!

If you are looking at property values in the hope of enjoying a great return, consider what property types have offered big value increases over the past 15 years.

What drives you when buying a home?

Research undertaken by Warwick Estates highlights the performance of property types in the past 15 years. Since 2006, the following changes have occurred in the value of property types across England:

  • Detached homes have increased in value by 63%, which equates to an increase of £158,165

  • Semi-detached properties have risen in value by 60%

  • Terraced homes have grown in value by 62%

  • Flats have increased in value by 57%

All property types offer a solid investment.

London has seen considerable growth

It shouldn’t be surprising to learn that London has experienced the largest growth in this area, but all areas have benefitted from an uptake:

  • Property in London has seen a growth of 119% in 15 years

  • The South East of England has experienced growth of 81% in this time

  • South West properties have risen by 60% in this time

  • Properties in the East Midlands have increased by 55%

  • The North East has experienced the poorest level of growth, only increasing by 19%.

Emma Power, COO of Warwick Estates, commented: “Detached properties appear to be flavour of the month right now with buyers keen to find bigger homes in the wake of COVID-19 lockdowns. But this data shows us that the important role detached homes now have in driving our market forward is not a new phenomenon: they have long been the backbone of residential property. The vast gulf between growth in London and growth in the North East is, of course, concerning as it highlights, once again, something we’ve known for a long time about the very different fortunes of our northern and southern markets.”

Emma concluded by saying; “But, we can feel quite optimistic that things will soon have more balance as, in recent months, the North East has shown some very strong growth while London’s market has sputtered. It won’t remain that way for long, of course, but as we move forward, I’m hopeful the gap will be somewhat narrower.”

If you would like to arrange an appointment to help you negotiate the local housing market, please contact Stones Residential today by calling us on 020 7483 0685 or emailing belsizepark@stonesresidential.co.uk.