House prices have rocketed in the past decade with homes growing in value by up to £118 a week, according to latest data.
Underlining the enduring resilience of the property market and the power of bricks and mortar, the research shows Scottish homeowners have seen property values rise by an average 91 per cent during the past 10 years.
With concerns about the global economy increasing by the day, home owners will be reassured by the Halifax data that shows their biggest investment remains rock solid.
Scotland recorded the biggest increase from £76,547 to £146,018, outstripping the UK average rise of just 52.8 per cent since 2001.
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 areas.”
While Tracy Kellett, managing director of buying agency, BDI Home Finders, added: “Despite the big fall in prices of 2008 and ongoing volatility, the property market is still up over a ten year period – and quite considerably.”
Owners of terraced houses have seen the biggest increase in the value of their property. They have recorded a 68.4 per cent hike over the past decade – or a staggering £118 a week.The typical price of a terraced home has soared from £89,843 in 2001 to £151,332 now, according to Halifax data. Bungalows recorded the second biggest increase at 67.9 per cent followed by semi-detached properties with a 62 per cent rise.
Overall the average three bedroom house is up 53 per cent in the last 10 years from £116,325 in 2001 to £177,740.
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, and thirdly, property has replaced stocks and shares as a pension for many.”
Flats recorded the smallest price growth over the decade to 2011 even though values rose 49 per cent.
Numbers more than doubled during the 2000s, as a proportion of all dwellings built in England, rising from 20 per cent in 2000/2001 to a peak of 50 per cent in 2008/09.
“This proportion has since dropped to 35 per cent in 2010/11 during the marked downturn in the housing market.”
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 the last 10 years.
In contrast, detached properties – which have gone up 56 per cent in 10 years – and flats witnessed the smallest percentage gains.
Scotland accounted for the biggest price rises across all five property types since 2001 followed by Yorkshire and Humber.
London accounted for 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 past ten years.
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: “Although all property types have recorded significant price increases overall during the past decade, terraced homes have seen the biggest growth.
“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.”