Demand for detached homes drives prices up by £60k since 2020

A surge in demand for larger homes has caused detached properties to soar in value by an average of £60k since the start of the pandemic.

Data from mortgage lender Halifax revealed typical prices for detached homes had grown at nearly twice the rate as smaller properties during this time.

This demand, it is believed, has been driven by the so-called ‘race for space’ – as the increase in remote working has given people the opportunity to move to more remote areas where they can afford bigger properties.

This has caused detached property prices to reach £425,177 in December 2021, an increase of around 17% or £60,556 in cash terms.

This compares to an increase of around 9% for a typical flat since March 2020, with prices rising by £13,325 up to an average of £158,992.

Areas such as Wales and the North West of England have seen the biggest increase in detached home prices up 24.4% and 21.9% respectively.

Russell Galley, managing director, Halifax, said: “Record numbers of moves have been taking place throughout the pandemic, with the demand for detached homes now greater than for any other property type, meaning the competition for those looking to buy an, often, larger property is fierce.

“As employers began to crystalise longer-term plans for home and hybrid working, buyers have been able to consider homes further afield as the need to commute falls away, with properties previously considered too remote now giving families extras like garden rooms and home offices.

“This trend means Wales, with its beautiful countryside and lower relative property prices, saw the strongest growth in detached homes over the past two years.”

The analysis found the most expensive detached residences were in London. In the capital the average detached home costs £910,568, following a rate of increase of 12.4%, which was almost double the average of all property types in the capital, Halifax said.

UK house prices by property type (Source: Halifax)