House prices across the UK have jumped by an average of £10,431 over the past year, with buyers increasingly targeting larger properties. The surge has pushed the average property price to £294,818, marking a 3.7% annual growth—a sharp rise from just 1% at the start of 2024, according to Halifax.
Experts attribute the growth to easing interest rates, which have made mortgages more affordable, allowing buyers to shift their focus back to spacious homes with gardens and parking—a trend that has persisted since the pandemic.
Terraced homes have led the charge with a 4.5% price increase, now averaging £235,296, while detached properties climbed 4.1% to reach £471,748. In contrast, flats saw the slowest growth, rising by 3.2% to an average of £168,569.
Amanda Bryden, head of Halifax Mortgages, noted:
“With interest rates easing, buyers are once again prioritizing homes with more space. Over the last decade, larger properties have consistently outperformed smaller homes in price growth.”
Toby Leek, president of NAEA Propertymark, added:
“More buyers are looking for homes with gardens, driveways, and even electric vehicle charging points. This shift is driving demand for terraced and detached homes over flats and apartments.”
With mortgage rates stabilizing and buyers adjusting their criteria, analysts expect the trend toward bigger, more flexible living spaces to continue shaping the UK housing market in 2025.
