Terraced homes 'saw largest gains'
Terraced houses increased in value by more than any other type of home over the past decade after buyers were priced out of the top end of the market, according to new research.
The average price of a terraced property has increased 68.4% to £151,332 in the 10 years to the second quarter of 2011, said the Halifax.
This equates to a rise of £118 a week and outstrips a 52.8% rise in the cost of the average home to £177,740.
Demand for terraces has been strong because they are the most affordable type of property, while more expensive detached homes have seen their share of sales drop, the report revealed.
Despite recent price hikes, a terraced home is 45% cheaper than an average detached home, which costs £273,173.
Halifax housing economist Suren Thiru said: "Although all property types have recorded significant price increases overall during the past decade, terraced homes have seen the biggest growth.
"Demand for such properties is likely to have been supported by their relatively favourable levels of affordability over the period. The rapid house price rises during much of the 2000s priced many potential home movers out of the upper end of the UK housing market."
Terraced properties saw their share of all house sales rise by more than any other property over the decade, increasing to 34% from 31%. Detached homes were the only type of property to see a drop in their share of sales, declining to 14% from 21%, driven by a large drop in demand from home movers.
Bungalows saw the next biggest rise in value - by 67.9% to £187,167 - followed by semi-detached properties, with a 62.4% increase to £164,970. The value of detached homes increased 56%, but flats and maisonettes were the worst performer, with a 49% increase to £163,825 after the market was flooded with a glut of properties.
Scotland and Yorkshire and Humber accounted for the biggest price rises across all property types over the decade, while London saw the smallest gains.