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The price of a single-family home rises three times faster than an apartment because Covid makes it difficult to climb a residential ladder.

The price of single-family homes skyrocketed three times faster than the price of apartments in 2020 as the blockade forced buyers to look for larger homes with gardens.

The value of single-family homes increased by 10% or £ 43,364 last year, with average costs reaching £ 486,595 by December.

This is “by far the biggest boom in the real estate market in the last 12 months,” according to Halifax data, and states that the gap between different rungs on the ladder is widening.

What’s sought: The value of single-family homes increased by more than £ 43,000 in 2020

Movers who want to step up from a semi-detached house will have to pay an additional £ 200,000 for their privileges. This is the biggest price increase of all house types.

Realtors said fierce competition to buy larger homes pushed prices up.

Edward Heaton, founder and managing partner of buyer Heaton & Partners, said:

“Apartments suddenly saturated the market, but this sudden price inflation is inevitable, as supply remains very low and demand for rural homes surges.”

According to Halifax, the average price of semi-detached homes last year was £ 287,313, up 6.3% or £ 16,930 in 2019.

Terrace houses were up £ 11,178 (5.8%) to £ 202,540 and flat houses were up £ 4,533 (3.2%) to £ 146,717.

Bigger is better: Thanks to Covid, prices went up significantly in big homes last year

Bigger is better: Thanks to Covid, prices went up significantly in big homes last year

Flat owners can expect to spend an additional £ 55,823 to upsize to a typical terraced house, while those currently in a terraced house need an additional £ 84,774 to own a semi-detached home. Will be.

So is there a flat owner who may have problems and want to sell?

Knight Frank’s head of UK housing research, Tomville, said that people selling apartments in big cities, who used to build homes, are now choosing homes in more suburban locations. Said that he might face difficulties.

“The pandemic has changed the way we think about property over the last 12 months,” he said. “Buyers now look at tape measures to see where their telecommuting desks go.

Halifax said it would cost buyers more to move up a residential ladder than ever before

Halifax said it would cost buyers more to move up a residential ladder than ever before

“Detached buildings benefit from the desire for more space and additional peace of mind. Larger apartments are priced as the popularity of homes of all sizes, as well as suburban and rural locations, grows. It has fallen the most sharply. The third national blockade only prolongs this desire for more space.

But those who are trying to buy an apartment are lucky. “It’s a great opportunity to become a flat buyer and it has the potential to offer something very competitive,” said Heaton.

According to data from London realtor Dexter, 80% of buyers are looking for more space.

Other priorities include access to outdoor spaces for relaxation and exercise and proximity to open green spaces, whether in the form of parks, riverside walkways or bike lanes. I did.

3 times the price of a single-family home in 20 years

A Halifax study also revealed that the price of single-family homes in the UK has tripled in 20 years. In 2000, buyers were able to secure a typical single-family home for an average of £ 164,827.

Over the last 20 years, the value of all property types has dropped significantly.

Over the last 20 years, the value of all property types has dropped significantly.

However, in the last five years, we have seen the sharpest price increases in upsizing from single-family homes to single-family homes. In 2015, it cost about £ 148,540 to jump, and in 2020 the gap widened to £ 199,282.

Meanwhile, those considering moving from an apartment to a terraced house paid an additional £ 36,939 in 2015 and rose to £ 55,823 last year.

People who moved from terraced houses to semi-detached properties paid £ 67,281 five years ago and rose to £ 84,774 last year.

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The price of a single-family home rises three times faster than an apartment because Covid makes it difficult to climb a residential ladder.

Source link The price of a single-family home rises three times faster than an apartment because Covid makes it difficult to climb a residential ladder.

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