A surge in buyer demand for larger properties has caused a rise in the price of detached properties according to the latest research from Halifax.
Analysis based on data from the Halifax House Price Index found that the cost of the largest types of properties in the UK has risen at more than twice the rate than for the smallest homes. Looking at changes in price since March this year, through the period of lockdown and over the summer into September, prices for typical UK detached properties increased by over 5%.
Russell Galley, managing director at Halifax, said: “We’ve seen a fundamental shift in demand from buyers as a result of increased home working and a desire for more space. There’s now evidence that it’s this push for larger properties that has been driving the mini-boom witnessed in the housing market since lockdown restrictions were first eased over the summer.
“This level of price inflation hasn’t deterred would-be buyers though, as in the three months up to September, we received more mortgage applications from both first-time buyers and homemovers than at any time since 2008. However, we continue to sound a note of caution on the longer-term prospects for house price inflation, with the full economic impact of the pandemic likely to be felt more keenly over the winter.”