UK Detached Properties Leading The Way On Price Yields

Savvy property investors and developers make it their business to keep an eye on the market and adapt their strategies to account for the latest market trends. With this in mind, new research revealing the latest top property type could be invaluable to help them make informed decisions, reports Abode2.

The average property has seen an increase of 1.4% in its value and is now commanding a price of ￡295 per square foot. However, not all properties were created equal in this respect.

According to the research, which analysed data for the first six months of this year and compared it to the same period in 2022, detached properties are the front-runners thus far in 2023. Priced at an admirable ￡337 per square foot, detached properties not only clinch the top spot in terms of value but have also enjoyed 4.3% annual growth. These homes have increasingly found favour among homeowners and investors due to the extra space they offer for the UK’s growing group of remote and hybrid workers. Their dominance is further reflected when looking at freehold properties, where detached homes boast a price of ￡340 per square foot, representing an annual rise of 4.6%.

Trailing closely behind, are semi-detached properties, which have secured a notable rise of 2.5% this year, positioning them firmly as the second-best option for those looking to invest. Interestingly, when we look at the data for leasehold homes, semi-detached properties really shine with a 4.3% growth, indicating their growing popularity among long-term leaseholders.

Mitchell Fasanya, Co-founder and CEO of Searchland, which conducted the research, commented on the evolving landscape:?“The latest data release may make for worrying reading for the nation’s housebuilders, as not only are flats the most common property type to bring to market, but the vast majority will be leasehold.

That said, while a marginal reduction in value per square foot is far from ideal when it comes to maximising profit margins, it’s important to remember that a far greater number of flats can be delivered in a single plot versus the space required to build a development of detached and semi-detached homes.

So, while flats may have taken a knock where topline values are concerned, they are likely to remain the most profitable endeavour for the nation’s housebuilders to pursue.”