Nationwide’s most recent data by property type reveals that terraced houses have seen the biggest percentage rise in prices over the last 12 months, with average prices up 3.5%.
Semi-detached and flats saw increases of 2.8% and 2.7% respectively while detached houses saw more modest growth of 1.7%.
Nationwide chief economist Robert Gardner says: “If we look over the longer term however, detached homes have continued to have a slight edge over other property types, most likely due to the ‘race for space’ seen during the pandemic.
“Indeed, since Q1 2020, the price of an average detached property increased by nearly 26%, while flats have only risen by circa 15% over the same period.”
Generally, UK house prices increased by 0.7% in September, after taking account of seasonal effects.
This resulted in the annual rate of growth rising from 2.4% in August to 3.2% in September, the fastest pace since November 2022 (4.4%).
Average prices are now around 2% below the all-time highs recorded in summer 2022.
Gardner continues: “Income growth has continued to outstrip house price growth in recent months while borrowing costs have edged lower amid expectations that the Bank of England will continue to lower interest rates in the coming quarters.
“These trends have helped to improve affordability for prospective buyers and underpinned a modest increase in activity and house prices, though both remain subdued by historic standards.”