The timeless terrace? Two-bed terrace homes remain the fastest-selling property type for the sixth year in a row
Latest research from Zoopla reveals that two-bed terrace homes are the fastest-selling property type in England and Wales, with a sale agreed in just 27 days
This is five days faster than the national average of 32 days
Larger, detached homes with 4 bedrooms or more take 40 days to sell on average
Zoopla expects homes to sell at a slower pace in the second half of 2024 as buyer demand moderates in the later months of the year
Under embargo until 00.01 Monday, 5th August 2024, London: Research from leading property website Zoopla has revealed that two-bed terraced homes are the fastest-selling property type in England and Wales, with a sale agreed in just 27 days compared to the national average of 32 days. This matches the pre-pandemic time to sell.
Zoopla’s time to sell measures the time between the property being first listed for sale and a buyer and seller agreeing a sale subject to contract - it takes several more months for these sales to complete. Scotland has been excluded from the analysis as homes often sell faster due to a different system when a property is under offer.
Where are two-bed terraces selling fastest?
Two-bed terraced homes have consistently been the fastest-selling home in more expensive regions like London and the East of England. However, they’re now also the fastest-selling property type in more affordable regions in the UK, signalling a shift in buyer requirements as a result of higher borrowing costs.
In the past three months, two-bed terraced homes were the fastest-selling property type in six of the ten regions in England and Wales. This property type is selling fastest in Yorkshire and The Humber (24 days), London (25 days) and The West Midlands (26 days).
Why are two-bed terraces so popular?
In the past three months, 60% of sales agreed for a two-bed terrace were within 30 days of being listed, highlighting their popularity. This is compounded by the fact that this property type makes up only 7% of listings over the past three months, with their relative rarity driving competition amongst buyers.
Two-bed terrace homes are also appealing to various types of buyers. For first-time buyers, they remain a good value-for-money option for those with limited funds (the average two-bed terrace home asking price is £200,000 vs £275,000 for a two-bed flat ).
Four-plus bed detached houses are currently the slowest-selling property type at a national level and although flats typically take longer to sell than houses, these are the fastest-selling property type in the North West, including in urban areas like Manchester, Liverpool and Warrington.
What’s next for time to sell?
Time to sell varies from season to season and typically, homes sell a week faster in the first six months of the year. Zoopla expects fewer homes to achieve a sale within 30 days in the second half of 2024.
Mortgage rates have fallen to an average of 4.5% to 5% which is enough to support more sales. A reduction in the base rate later this year could boost market sentiment and support demand and the pace at which sales are agreed.
The importance of pricing a home correctly should also not be underestimated. Homes that have had to undergo an asking price reduction of 5% or more are taking an average of 70 days to agree a sale - over 2x the average. To ensure you’re pricing your home correctly, sellers should speak to several local agents to understand the demand for their home and how to price it. They can also use Zoopla’s area guides to gain an understanding of local house prices in their area.
Izabella Lubowiecka, Senior Property Researcher at Zoopla comments: “The average UK home sells in 32 days after being listed for sale. This is faster than a year ago as market activity improves. Larger houses and flats take an extra week to find a buyer. Serious sellers who want to sell quickly should discuss this with their agent who can advise on best price to sell more quickly.”
Director of Benham and Reeves, Marc von Grundherr, commented: “Terraced homes are hot property in the current market and they tend to get snapped up very quickly for a number of reasons.
Their primary appeal is the middle ground they offer between apartment living and larger homes. Whilst they tend to boast the same number of bedrooms as most apartments, it’s the greater degree of living space and that all important outdoor area that give them the edge, making them the ideal property for those looking to to take the next step to a more family suitable property.
Another key draw of terraced homes is that they more centrally located in major towns and cities where space is limited, whereas larger semi-detached and detached homes are often found further afield. This means that buyers can gain more space without the addition of a lengthy commute. In this respect, they often act as the perfect stepping stone for those transitioning to the next stage of life, but who aren’t quite ready for the slower pace of life found in the suburbs.
Then there’s the price appeal, with terraced homes providing a far more affordable step up the ladder compared to other larger property types. With mortgage rates having increased notably in recent years, this appeal has only grown stronger as buyers have found themselves more restricted with regard to their purchasing power in the market. However, terrace home stock can be limited and when you couple this limited level of supply with their high appeal amongst buyers, the result is a very fast moving market.”
ENDS
Notes to Editors
Our time to sell metric measures the number of days between the home listed for sale and the property being marked as “sold subject to contract” by the estate agent. This analysis focuses only on homes that secured an offer.
Homes listed for longer than 6 months are excluded from the analysis. We use the median as our measure of average.
Scotland has been excluded from this analysis as homes often sell faster due to a different system when a property is under offer.