A market analysis by easyMoney, a peer-to-peer real estate investment platform, has discovered that detached homes have produced the highest investment returns among all residential property types in the last ten years. The value growth of detached homes exceeded flats by over 20%.
In order to identify the most lucrative residential property type for investment, easyMoney analysed the annual value changes of detached, semi-detached, terraced homes, and flats over the past decade.
Over the last ten years, the average price of detached homes in the UK has risen by 74% (£195,247), reaching a current price of £459,013. This represents the largest value increase among all property types. Semi-detached homes now cost an average of £280,425, following a ten-year price growth of 71.4% (£116,817). Terraced homes have increased in value by 67.6% (£95,024) since 2013, with an average price of £235,529.
On the other hand, UK flats have experienced a price growth of 51% (£77,127) in the past decade and currently cost an average of £228,441.
Jason Ferrando, CEO of easyMoney, commented, “This research demonstrates just how secure property investment is in this country. Despite all of the economic and global turmoil we have endured in the past decade, negative annual price change has only been recorded twice and in both instances it was flats that lost value, and neither time did the loss surpass -0.7%.”
Ferrando added, “Flats are, in general, an outlier. While all other property types enjoyed massive price boosts during the pandemic, flats recorded only their third-highest growth of the decade. This is because the pandemic and lockdowns instigated a race for space that flats simply cannot satisfy, and also because of the external cladding issues highlighted by the Grenfell tragedy and which continues to haunt high rise buildings to this day.”
Despite these challenges, Ferrando concluded, “Flats have still delivered positive ten-year investment returns proving that even in the worst circumstances, residential property is one of, if not the most reliable investment asset money can buy.”
