house prices

Smaller properties are gaining popularity among UK homebuyers

As detached house sales continue to struggle, interest in semi-detached and terraced properties has seen a revival while general confidence in the housing market picks up.

The largest proportion of home sales in the UK over the second quarter of 2018 was made up of smaller homes, new research by TwentyCi has found, with terraces and semi-detached houses accounting for 55% of all property exchanges during the three months to July.

Having driven overall housing market growth over the past year, the property types have overtaken both detached homes and flats in terms of sales numbers, a sign that the property market is continuing to change.

Year-on-year, the number of terraced houses exchanged has risen by 8% to 61,000, while semi-detached home sales have increased by 6% to 55,000 exchanges between Q2 2017 and Q2 2018. In contrast, the number of detached houses exchanged in the second quarter this year compared to 2017 has plummeted by 12% to 35,000, while the number of exchanges on flats has seen an 8% decline to 31,000.

Why is the market changing?

One reason behind this changing trend could be the fact that flats now dominate the rental sector in most major towns and cities, as opposed to the sales market, and are the preferred option for long-term investment among buy-to-let landlords and investors. With the rise of Generation Rent, as people put off climbing onto the property ladder until later in life, this could be something that is set to continue – particularly as build-to-rent is gaining more market share in the sector.
[crb_image link=”” image=”” align=”left”]
In terms of detached homes, it could be that the owners of these properties are choosing to stay put as opposed to downsizing later in life, with equity release becoming a more popular route to gaining access to property cash. An increase in multi-generational living, with youngsters staying at home with their families for longer, could also be behind some of the lack of sales in this end of the market, as well as high stamp duty costs for more expensive properties serving as a deterrent for some buyers.

Kate Faulkner, managing director at, said: “With some indices and market reports suggesting we have a market currently in the doldrums, this in-depth data shows that this very much depends on the market consumers are operating in.

“For example those selling properties over a million pounds are having to discount – and if in London, selling times are around five months. In contrast, terraces and semi-detached properties under a million pounds are dominating transactions currently. The summer months will be crucial to finding out which way the market goes for the rest of 2018.”

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:


Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment


Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:


+44 (0) 333 123 0320

Open from 9am-6pm GMT


+852 6699 9008

Open from 9am-6pm HKT