TWO BED TERRACES MAKE FOR SOLID INVESTMENT

House sales to struggling couples help boost popularity of two bedroom terraces.

House hunters looking for a solid long-term investment should consider buying a two bedroom terrace home.

That’s according to Home Sale Network the Uk’s largest network of independent estate agents, who say that if prices continue to rise, two bedroom terraces will soon replace three bedroom semis as the most popular type of house in Britain.

The Home Sale Network’s most recent quarterly survey of its 740 strong membership revealed that two bedroom terraces are increasing becoming the property choice for buyers, with almost 30% not opting for one over a larger home. This figure is up 13% on the same period in 2002 and it is the highest it has been since the 1990’s.

In contrast, the ever popular three bedroom semi has been decreasing in popularity over the past year, down in demand by 5% on the same period in 2002.

Neil Harrison of Johnsons, the local Home Sale Network member in Doncaster said: “More couples are now being forced to buy smaller properties because salaries aren’t keeping pace with house price rises”.

“If this trend continues, which is likely due to house price growth forecasts, then these smaller homes will become a solid long-term investment for house buyers”.

“This is mainly because it is likely they will be easier to resell due to increasing demand from buyers, but also as the more increasingly popular type of home, they should theoretically increase in value more so than other types of homes,” he added.

According to the Home Sale Network survey, the cost of a two bedroom terrace house is now rising faster than any other type of property from £105,970 in quarter three 2003 to £109,900 in quarter four 2003.

February 2004