Money News
New research by Halifax Estate Agents shows that over the last 5 and 10 years house price increases in the UK have been greatest for terraced houses. Based on Halifax's own house price data, the results show that over the last ten years, for example, the average UK terraced house price has increased by 239%, closely followed by flats and maisonettes at 235%.
Over the last five years the trend is a little different; terraced properties have still recorded the biggest average house price increase across the UK at 113% but, the next biggest increase was seen by semi-detached houses at 95%. Flats and maisonettes recorded more modest growth at 87%.
Despite the strong growth in the price of terraced properties, detached houses still have the highest average price of all property types. The average price of a detached property in the UK is now £326,396, compared to £110,240 at the end of 1996.
In 1996 the average detached property would have been well under the Inheritance Tax (IHT) threshold of £200,000 (In April 1997 this was increased to £215,000). Even with an increase in the IHT threshold in April this year (2007) to £300,000 the value of the average detached property will be well in excess of this. Currently, the average detached property in the UK (£326,396) is now also well in excess of the £250,000 (3%) stamp duty threshold.
Meanwhile, the average price of all property types is now above the £125,000 (1%) lower stamp duty threshold. In 1996 the lower stamp duty threshold was £60,000 - so both the average terraced property (£54,945) and flat and maisonette (£58,046) were below this.
At a regional level, the biggest house price increases in the UK have been seen in terraced houses in Northern Ireland, followed by flats and maisonettes in East Anglia - the average price of a terraced house in Northern Ireland having risen by 372% - flats and the average price of a maisonette in East Anglia having increased by 328%.
At the opposite extreme the average house price increase for a semi-detached property in Scotland was 129%, followed by detached properties and bungalows at 147%. However, the average price of a detached property in Scotland currently stands at £246,372 - well above the UK all property types average of £218,760.
09 March 2007 © Moneyextra.com
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