Flat prices go through the roof for buy to let investors

Buy to let investors owning houses or flat for the past 10 years have worked out as the biggest property house price winners.

Flats come in first since 2009, mainly due to peaking prices in London.

The prices of buy to let flats have gone up an average £394 a month over the past 10 years, according to a study by mortgage lender Halifax.

Average prices have risen by 35% or £47,000 ' from £133,483 10 years ago to £180,799 now.

The price rises have been tracked by those for buy to let terraced homes, which increased 32% in the same period.

Martin Ellis, housing economist at Halifax, said: “While prices have risen for all property types, there have been a number of distinct periods of performance in the last ten years. Bungalows and detached homes fared best during the downturn as these property types are less popular with first-time buyers who were particularly affected by the mortgage famine at the height of the financial crisis.

“Since 2009, larger property has underperformed flats and terraces. The demand for such properties has been partly constrained by a widespread lack of equity amongst homeowners who bought for the first time around the peak in the market and who are therefore finding it difficult to finance a move to a larger home.”

 UK house prices by property type, 2003-2013

Property Type Q2 -2003  (£) Q2 -2007 (£) Q2 – 2009 (£)    Q2 – 2013 (£)  2003-
2007% change
2007-
2009% change
2009-
2013% change
10 year % Change (2003
- 2013)
Terraced 121,533 209,917 140,690 160,133 73% -33% 14% 32%
Bungalows 154,970 229,520 180,271 192,237 48% -21% 7% 24%
Semi-Detached 138,770 216,872 159,251 171,862 56% -27% 8% 24%
Detached 244,734 359,497 266,060 286,175 47% -26% 8% 17%
Flat 133,483 215,439 146,024 180,799 61% -32% 24% 35%
All Properties 154,503 241,838 169,533 189,145 57% -30% 12% 22%

Source: Halifax

Average House Price by property type and region, % change 2003-2013

Region Terraced Semi-Detached Detached Bungalows Flats
North 45% 32% 25% 12% 29%
North West 36% 28% 12% 8% 12%
Yorkshire & the Humber 41% 28% 25% 31% 1%
West Midlands 23% 22% 13% 33% 11%
East Midlands 27% 21% 12% 6% -15%
East Anglia 25% 19% 13% 15% 32%
Greater London 27% 23% 13% 21% 37%
South East 19% 22% 15% 17% 19%
South West 22% 19% 18% 19% 14%
Wales 55% 33% 22% 31% 27%
Scotland 47% 50% 35% 49% 57%
UK 32% 24% 17% 24% 35%

Source: Halifax

Average House Price by property type and region, 2013

  Terraced Semi-Detached Detached Bungalows Flats
North 107,077 129,555 220,278 135,861 100,691
North West 104,285 143,097 240,610 154,597 113,404
Yorkshire & the Humber 111,203 131,331 237,742 165,659 100,693
West Midlands 120,962 145,666 255,388 210,177 108,275
East Midlands 113,376 129,853 222,259 149,790 86,655
East Anglia 143,787 164,003 254,334 164,852 125,531
Greater London 335,957 378,048 581,546 346,539 286,993
South East 195,882 243,208 411,295 262,695 154,953
South West 164,298 186,084 321,848 228,788 141,359
Wales 114,911 129,770 214,987 158,234 111,769
Scotland 115,252 137,486 235,883 176,519 121,089
UK 160,133 171,862 286,175 192,237 180,799

Source: Halifax

 

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