I've always liked a traditional terraced house, they are balanced, flexible and timeless.Give me a little terraced house over a 2 bed new build apartment every time.
According to Auction Finance Limited we are seeing a surge in demand for terraces in the auction rooms.
Currently, just over a quarter of all homes purchased in the UK are terraced. Research has revealed 38 per cent of house hunters would choose a terraced property over a detached house, semi or flat* making them popular choices for buy to sell investors.
Auction Finance Limited, a national short term lender, which provides funds for purchases before, during and after an auction, has lent more than £8M for the purchase of terraced properties this year. An increase of 22 per cent compared to 2010.
Over the last decade, terraced properties have increased in value more than any other home type, in contrast to flats which have gone down.
The majority of repossessed properties are terraces and these regularly provide quality stock for auction rooms. With the boom in the rental sector, these properties are being snapped up by yield-hungry buy-to-let investors, says Chris Baguley, director of Auction Finance Limited.
Baguley, said:
“As the property market picks up terraced property prices are likely to keep increasing, more so than other types. Investors need to act fast. A large bulk of our lending is to buyers investing in terraced houses. We’re seeing a renaissance for this type of property.
“Auctions offer the buyer the chance to purchase property at what are effectively discounted prices. We’re seeing houses that have been on agents’ books for £100,000 go for as little as £55,000 in the auction rooms. They’ve always been popular but we could see a real boom over the next 24 months. People are going back to basics with investments, terraces are a safe option.
“Terraced properties appeal to a range of people from first-time buyers, buy-to-let investors and students. Many have a lot of period character, a great sense of community and above all affordability – it’s a home type for the times and both buyers and sellers recognise this.”
He added:
“The likes of Sixty Minute Make-Over and Property Ladder are fuelling this popularity as viewers see how traditional terraced properties can be transformed into contemporary stylish homes.”
The average price of a terraced property has increased 68.4 per cent to £151,332 in the 10 years to the second quarter of 2011, said the Halifax.
Auction Finance Limited typically lends 70 to 75 per cent on a property and loan sizes vary from £25,000 to £1m, with an average loan size of £74,500.
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I couldn't agree more regarding the inherent value of a terraced house over your 2 bed new build flat.
ReplyDeleteHowever there is a proverbial fly in the ointment coming soon which will impact on the rentability of those terraced houses.
In 2018 all rented property WILL have to meet enery efficiency standards.
Any property have an F -G EPC rating WILL have to be withdrawn from the letting market.
Yes there will be govt assistance for certain works to be carried out but the landlord will have to stump up most of the money.
All that will happen is the tenant will save money on fuel bills but the landlord will be unable to increase the rent for the additional energy saving measures he has been forced to institute and pay for.
Most terraced properties are in the F - G EPC category.
If these works are not carried out we face hundreds of thousands of terraced rental property being forced to withdraw from the letting market until those works have been carried out.
I don't think there are enough builders in the country to carry out all these works even if they started NOW!
Where will all the tenants go who have to vacate these terraced properties and who is going to pay the mortgages on those properties now no rent will be coming in.
Possibly lots of repossessions etc. if landlords can't afford to meet the required EPC standard!?