As buying power decreased over 2023, there was an expectation that highly motivated buyers would scale down their property requirements.
However, our latest House Price Index shows home hunters aren’t looking into smaller or cheaper properties - and 3-bedroom houses remain the nation's favourite property type.
But not all 3-bedroom houses are equal. And our analysis of asking prices per bedroom reveals some types of 3-bedroom houses offer better value for money than others.
Which three-bed homes offer more bang for your buck?
Houses with 3 bedrooms are very common: 2 in every 5 homes in the UK belong in this category.
They also happen to deliver the space that most people need and as such, attract interest from buyers on all steps of the property ladder.
The average price of three-bed homes in any area sets the benchmark for larger and smaller property types to orientate around.
Let's take a look at the different types of 3-bedroom properties and calculate what the asking price per bedroom would be across different styles of homes: terraced, single or detached properties.
The price of individual bedrooms across different property types
Three-bed terraces offer the best value for money
Our research reveals 3-bed terraces offer the best value for money, with a typical asking price of £89,000 per bedroom.
Across the UK, 3-bed terraced homes offer either the lowest or second lowest price point per bedroom, with prices ranging from £38,000 per bedroom in the North East to £183,300 per bedroom in London.
The average asking price for each bedroom in a 3-bed terraced home is typically £4,300 (or 5%) lower than the equivalent price for each bedroom in a 3-bed semi-detached house.
And if we compare 3-bed terraced homes with 3-bed detached houses, we can see that the cost per individual bedroom is £36,000 (or 29%) higher in detached properties.
Interestingly, 4-bed terraces offer only marginally better value for money in the South East, South West and East of England, where asking prices for larger homes have fallen faster than those for 3-bed terraces over last year.
However, buying a 4-bed terrace in these regions will require a budget that is 22% higher than that required for a 3-bed terrace.
The availability of 4-bed terraces is also more limited: just 1 in 28 properties currently available on the market is a terraced house with four bedrooms.
The asking price per bedroom of a 3-bed terrace is also lower than that of flats of any size, which sheds light on why buyers are keen to stick with houses.
Buying a 3-bed terrace? What to consider
Although terraced houses present better value for money, they may not deliver on all the features home movers may be looking for.
Terraces don’t always offer as much internal space as larger detached and semi-detached homes, with the average 3-bed terrace providing around 993 square feet of internal space.
Detached homes however offer an average of 1,210 square feet of space, while 3-bed semis have 1,010 square feet of space.
The external, but highly desirable features such as a garden, off-street parking and garage options are also more limited when buying a terraced home.
Three-bed terraces also tend to be less common than 3-bed semi-detached houses or 4-bed detached homes: only 1 in 9 properties available to buy on Zoopla in September was a 3-bed terrace.
They tend to be more commonly available in northern England, Wales, the South West and West Midlands - and their availability is the highest in the North East and Wales, with 1 in 6 homes on the market being a 3-bed terrace.
In Scotland and London, only 1 in 12 properties on the market is a 3-bed terrace.
Buying a terrace may mean making a compromise. However, for those who are keen to move but find themselves on a smaller budget, they may offer an interesting alternative to larger property types.
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