The price of detached homes is rocketing as Brits scramble for more space. Estate agents are calling it a ‘race for space’, with families taking advantage of slightly lower house prices and the possibility of falling mortgage rates to finally bag that dream detached home.

Detacheds Surge Ahead in Value

Official figures from the Office for National Statistics (ONS) show that detached homes in England have shot up in price by an average of £16,000 in just one year. That means the average detached home now costs a cool £466,000.

And it’s not just detached properties feeling the love – their slightly smaller siblings, the semi-detached, haven’t been left out in the cold. They’ve enjoyed a healthy price jump of £15,000, bringing the average price to a respectable £450,000.

But while bigger properties are enjoying a boom, smaller homes are feeling the pinch. Terraced houses are only up a measly 1.9 per cent, and if you own a flat, it might be time to look away now – they’ve actually dropped in value by 1.5 per cent!

Ouch! That means if you’re selling the average flat, you could be down £4,000 compared to last year.

Why the Big Squeeze for Space?

So, what’s behind this insatiable appetite for larger homes? Well, experts reckon it’s a perfect storm of factors.

Verona Frankish, from estate agent Yopa, says: “We’ve seen an uplift in market activity for larger homes being driven by two key factors…the prospect of reducing mortgage rates… [and] savvy buyers are acting now to take advantage of slightly cooler market values…”

Basically, buyers are betting on mortgage rates going down and house prices staying put for now, making it a prime time to make their move.

Home Mover Mortgages Tell the Story

And it seems they’re putting their money where their mouths are. Analysis by Lloyds Bank reveals that a whopping 60% of all home mover mortgages in the first half of this year were for detached and semi-detached properties.

It’s a clear sign that after years of being cooped up during the pandemic and with the rise of working from home, we’re all desperate for a bit more elbow room.

Flats Fall Out of Favour

The bad news for flat owners is that the trend shows no sign of slowing down. Lloyds Bank found that only 13% of movers opted for a flat in the first half of the year. Ouch again!

Experts reckon this is partly because people are spooked by horror stories about leasehold ownership, preferring the security and control that comes with owning a freehold house.

Green Shoots of Recovery?

Despite the shift towards bigger properties, there are glimmers of hope for the market overall.

Lloyds Bank says the number of people moving home has jumped by 10% compared to last year, with 126,884 moves recorded in the first six months of 2024.

Property website Zoopla is also feeling optimistic, reporting that the number of sales agreed is 16% higher than a year ago and a healthy 22% above pre-pandemic levels.

So, What Does This Mean For You?

• Thinking of trading up? Now could be the perfect time to strike while the iron’s hot and bag that spacious detached home you’ve been dreaming of.
• Own a flat? Don’t panic! While prices might be down, there are still buyers out there. It might just take a little longer to find the right one.
• First-time buyer? All this movement in the market could be good news for you! As more movers climb the ladder, it frees up properties at the lower end of the market, giving you more choice and a better chance of grabbing your first home.