Average property value up a quarter over the last 5 years

Detached property values have risen by more than £100,000 since 2020, as the demand for larger homes has driven property price growth.  Over the lats five years, detached house prices have risen at a faster rate than during the previous five years, 29.6% against 23.7%. The only property type to not see a larger growth rates was flats, which rose by 16.7% compared to 22.3% in the previous five years. That compares to a national average of all home types of 25.1% since 2020, against 23.8% in the previous five years. 

The research has been conducted by Halifax in their most recent house price index who go on to identify the cost gaps between different types of property has widened too since 2000.

At the turn of the century the cost of the average flat was £49,905. An extra £9,105 would get a terraced house, a further £22,006 a semi-detached house, and an additional £51,655 on top of that would secure a detached property. In 2025 the cost of the average flat is now £168,569. An extra £66,726 would be needed for a terraced house, a further £72,389 for a semi-detached house, and another £164,063 for a detached property.

First time buyers currently make up around one in three property transactions as 2024 saw a 20% uplift in the number of first time buyers in the market. Flats account for around 27% of all first-time buyer purchases in the UK, varying significantly by region, from 71% in London to just 4% in the East Midlands. But the desire for space, and improved mortgage affordability saw larger properties outperform smaller ones say Halifax. Terraced homes rose by 3.5%, semi-detached houses by 2.9%, and detached properties by 2.8%.

In the wider market price growth fluctuated month on month; flats saw anything from 1.3% price growth in January 2024, to 4.7% in October 2024. In January 2025 it was 3.2%.  Terraced homes saw strong growth last year with the average price up £10,025 over the course of 2024.  Semi-detached properties rose by £11,367 in cash terms, with the average price now at £307,685; while detached houses saw annual growth of 4.1% (£18,704), to an average price of £471,748. 

Commenting Amanda Bryden, Head of Halifax Mortgages, said:

“The fortunes of different property types tend to ebb and flow depending on broader market conditions. This time last year, the average price of a flat had risen more quickly than a detached house, as buyers adjusted to higher borrowing costs and sought to compensate by targeting smaller properties. Now, as interest rates have started to ease, it’s once again those homes offering more space which are fuelling demand. And that’s not just a short-term trend; over the last decade, bigger properties have tended to outperform smaller homes when it comes to price growth.

“This has caused the gap between the rungs on the housing ladder to widen further, presenting a bigger challenge to those looking to make the step up. However, that only tells part of the story. Slower growth among smaller homes is helpful for first-time buyers, and we saw a big rebound in that market last year, with a fifth more stepping onto the ladder. If you look beyond the UK picture to the individual nations and regions, there’s huge variance in average price performance for different property types, with many areas offering more value for money”.