Halifax: smaller homes drive house price growth

Near-record house prices and high interest rates are forcing buyers to plump for smaller homes, Halifax has found, with flats and terraced houses leading overall UK price growth.

UK house prices as shown by a terrace with London's tower-filled skyline in the distance
UK house prices are growing fastest for terraced homes and flats
(Image credit: Getty Images)

Demand for homes on the lower rungs of the property ladder is driving house prices up, new research by Halifax has found.

The Bank’s findings, which have been based on its monthly House Price Index (HPI), showed UK prices had grown 1.9% (£5,318) year-on-year as of February 2024. But within the data, flats and terraced homes saw their value increase faster than semi-detached and detached homes.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Henry Sandercock has spent more than eight years as a journalist covering a wide variety of beats. Having studied for an MA in journalism at the University of Kent, he started his career in the garden of England as a reporter for local TV channel KMTV.

Henry then worked at the BBC for three years as a radio producer - mostly on BBC Radio 2 with Jeremy Vine, but also on major BBC Radio 4 programmes like The World at One, PM and Broadcasting House. Switching to print media, he covered fresh foods for respected magazine The Grocer for two years.

After moving to NationalWorld.com - a national news site run by the publisher of The Scotsman and Yorkshire Post - Henry began reporting on the cost of living crisis, becoming the title’s money editor in early 2023. He covered everything from the energy crisis to scams, and inflation. He also has bylines in MoneyWeek.