House prices surge by 68%

House prices have rocketed in the past decade, with values rising by up to £118 a week, according to the latest data. Terraced homes have seen their values soar by an average 68.4 per cent, underlining the enduring resilience of the property market. With concern about the global economy increasing by the day, home owners will be reassured by the ­Halifax research that shows their biggest investment remains rock solid. Peter Rollings, of estate agent Marsh & Parsons, said: “Property may not be a very liquid investment, but it is a safe long-term bet. “Even taking into account the downturn in 2008, long-term home owners have seen strong capital appreciation in the past  decade. The UK’s growing population and demand for accommodation, combined with an under-supply of  new-build homes, means that prices will rise in the long-term in many parts of the UK.” Tracy Kellett, of buying agency BDI Home Finders, added: “Despite the big fall in prices of 2008 and the ongoing volatility, the property market is still up over a 10-year period – and quite considerably. “If you buy property and hold it for the long term, ­history suggests you will do well. I am not surprised that the largest price rises have been on terraced homes. “In the current economic climate, those people who in the past may have been looking for a semi-detached home at the next pricing level are being conservative and aiming their sights lower. “With demand for terraced properties relatively strong and supply low, prices are buoyant.” Owners of terraced houses have seen the biggest increase in the value of their property, recording a 68.4 per cent rise over the past ­decade, which works out at £118 a week. The typical price of a ­terraced home has soared from £89,843 in 2001 to £151,332 now, according to Britain’s biggest mortgage lender. Bungalows recorded the second biggest rise at 67.9 per cent, followed by semi-detached properties with a 62 per cent increase, according to the Halifax. Overall the average three-bedroom home is up 53 per cent in 10 years from £116,325 in 2001 to £177,740 now. Property expert Henry Pryor said: “Property remains one of the most attractive investments. “Firstly you can live in it, either the owner or a tenant, secondly property remains one of the few investments you can leverage to borrow on again and again. “Thirdly, property has replaced stocks and shares as a pension for many.” Flats recorded the smallest price growth over the decade to 2011, at 49 per cent. This relative under-­performance largely reflects an over-supply in some parts of the country. Miles Shipside, of online property analysts Rightmove, said: “Terraced property is the traditional purchase of choice of first-time buyers, and this demand has given this property type the largest percentage increase. “While trendy flats and apartments fetched high prices during the boom, these figures show that the less fashionable terrace has proved to be the best long-term investment.” Terraced homes recorded the largest price increases of any property type in eight of the 11 UK regions tracked over 10 years. In contrast, detached properties – which have gone up 56 per cent in a decade – and flats witnessed the smallest percentage gains over the period across nine regions. Yorkshire and Humber and Scotland accounted for the biggest price rises across all five property types since 2001, while London marked the smallest gains. The price rises mean those looking to trade down later in life have seen their potential cash windfall rise by more than a third over the decade. Downsizing from a detached home to a bungalow would have earned an average windfall of £86,006 in 2011, an increase of 35 per cent since 2001. Suren Thiru, Halifax housing economist, said: “The rapid house price rises during much of the 2000s priced many potential home movers out of the upper end of the UK housing market.”