Families face £145k black hole to make second step on property ladder

Families hoping to buy a detached home must now spend another £145,000 to make their second step on the property ladder, after the pandemic widened the gaps between rungs on the ladder.

The race for space among buyers triggered a 17pc rise in detached house prices between March 2020 and December 2021, equal to £60,000, according to lender Halifax. 

These soaring prices mean families hoping to make the move from a semi-detached house to a detached property now need to shell out an additional £145,087. That is one fifth more than the £121,371 needed just before the pandemic hit. 

Value gaps between different types of property have expanded across the board. Buyers up-sizing from a terraced property now need an extra £66,292 to own a semi-detached home, compared to £57,166 in March 2020. 

Russell Galley, of Halifax, said: “Record numbers of moves have been taking place throughout the pandemic, with the demand for detached homes now greater than for any other property type, meaning the competition for those looking to buy an often larger property is fierce.”

Meanwhile, flats have rapidly fallen out of favour as buyers flocked out of cities in search of gardens and more spacious homes. Apartments rose in value by much less than larger homes, at 9pc last year, equal to an increase of more than £13,000.

Flat owners now need to spend £54,806 more to move to a typical terraced house, which is 36pc more than in March 2020. 

“As employers began to crystalise longer-term plans for home and hybrid working, buyers have been able to consider homes further afield as the need to commute falls away, with properties previously considered too remote now giving families extras like garden rooms and home offices,” said Mr Galley.  

House prices in Wales have consistently grown at a faster pace than any other area during the pandemic, attracting both home movers and second home buyers to its vast countryside and coastline. The price of an average detached home in the country has soared by more than 24pc since March 2020, followed by a jump of almost 22pc in the North West of England. 

In London, where the housing market has been hardest hit by its population fleeing to greener pastures since 2020, the price of detached houses has increased by 12.4pc, the lowest in the country.

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