London’s terraced homeowners have seen the highest house price growth over the past decade, according to new research published today by Proportunity, with terraced housing being the best performing housing type across the whole of England and Wales.
Proportunity, which provides Help to Buy-style equity loans, analysed the changing price per square metre of all properties sold in England and Wales since 2010. From this they calculated the compound annual growth rate (CAGR) for each property type by region, and also at an England and Wales-wide level.
Despite recent stagnation, Greater London was home to the highest performing property types in all but one category over the past decade. The capital’s flats, terraced and semi-detached houses all outperformed their counterparts in other regions, with growth of 4.93%, 5.07%, and 4.33% respectively. However, owners of detached houses in the East of England saw only a marginally higher growth: 3.07% compared to 3.06% in London.
Across all of England and Wales, the top performing property type was terraced houses, with an average growth of 3.05%. Semi-detached houses had growth of 2.9% on average, with flats seeing growth of 2.35%. The slowest growing property type was detached houses, with annual growth rates of 2.33% since 2010.
Flats in the North East performed the worst of any regional property type, with an average decrease in price of 0.5%. Flats in Yorkshire and The Humber, and the North West also lost value over the decade, with 0.12% and 0.04% decreases annually respectively.
Proptech firm Proportunity helps first time buyers get onto the housing ladder, offering Help to Buy-style equity loans that are available on any property type, meaning that you can own a home with only a 5% deposit. The startup also utilises an AI-powered analytics platform to identify hidden gems on the market, helping buyers find a home with better features or at a better price than they would otherwise be able to.
Vadim Toader, founder and CEO of Proportunity, said: “The 2010s were marked by the after-effects of the financial crisis, and then by Brexit uncertainty. Despite these headwinds, we have largely seen growth across the board but the clear winner is terraced housing, or more specifically, terraced homes in London, with buyers likely attracted to their historic characteristics and charm, as well as their limited supply, compared to new builds. Yet, despite their popularity, they are out of reach for many first time buyers in the capital, with Help to Buy restricted to new-builds only, which are typically flats or semi-detached or detached houses.”