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Detached home values at £425,000 with higher demand

The average value of detached homes has increased at twice the rate of smaller properties to £425,000 with a surge in buyer demand.

Property values for detached homes increased 16.6% or £60,556 to an average of £425,177 from March 2020 to the end of 2021, which is twice the rate of smaller properties says Halifax.

Demand from home movers and first time buyers soared after the Covid lockdowns as the priorities of people changed with a need for more indoor and outdoor space, such as buying detached homes.

This compares to an increase of 9% or £13,325 for flats from March 2020 to the end of 2021 with an average property value of £158,992.

For the equity release buyer, these rising house prices give them the opportunity to access wealth using a lifetime mortgage to improve your quality of life, home and garden improvements.

Biggest rise for detached homes

Across the UK the biggest rise in house prices was for Terraced homes in Wales up 25.1% followed by detached homes in Wales up 24.4%.

Detached homes are leading in eight of the twelve regions with the North West up an average 21.9% or £63,229 with average property values at £351,492.

If your lender requires you to repay your current interest only mortgage, you can use equity release and with higher property values the smaller loan to value means the interest rate could also be lower.

This table from Halifax shows the detached house prices for each region and the percentage rise from March 2020 to the end of 2021.
Region Detached prices
Wales £319,492 24.4%
North West £351,887 21.9%
South West £454,133 20.2%
East Midlands £358,441 19.0%
Yorkshire £324,581 18.3%
West Midlands £389,553 17.4%
Scotland £283,214 16.3%
North East £278,863 15.5%
South East £586,781 15.4%
East of England £505,379 14.3%
Northern Ireland £217,226 13.4%
London £910,568 12.4%
In the South West detached house prices are up 20.2% or £76,380 averaging £454,133 followed by East Midlands up 19.0% and Yorkshire rising 19.0%.

The biggest monetary rise for detached homes is in London up £100,525 although this is the lowest percentage rise of 12.4% as the average property values are much higher at £910,568.

Homeowners can consider replacing an existing equity release plan taken out from June 2016 using a gilt based early redemption charge, as this charge could zero now and benefit from a 2% per year lower interest rate.

If you live in a detached house that is bigger than your needs, downsizing your home to release cash could be an option and you can use a lifetime mortgage to access more now or in the future.

Family could help first time buyers

Family members could help first time buyers with their house purchase using equity release for lump sum cash up front which can be gifted as a deposit for a child or grandchild.

The number of first time buyers in 2021 rose at a record rate of 35% totalling 409,370 even though affordability is low with average deposits of £53,935.

This is partly due to changes made by lenders in the first lockdown in 2020 when it was very difficult for first time buyers and the numbers were 303,970.

See how much cash you can access using a lifetime mortgage for a first time buyer deposit at this link:
Equity release calculator with instant results and figures for your property.

The biggest change over the year is London with 49% more first time buyers to 56,857 and next was the South East rising 40% to 85,666.

First time buyers in London have a deposit of 24% or £115,759 to buy properties with an average price of £488,771 compared to the South East with a 19% or £60,953 deposit and price of £322,386.

What are your next steps?

Talk to our London City Mortgage advisers if you are replacing an existing equity release plan, we can recommend the product and manage the application through LCM.

Find out more about the lowest lifetime mortgage rates to access cash from your property with this link:
Free equity release quote with interest rates to access wealth.

Our expert advisers can select the product if you repay an interest only mortgage on your detached home. Learn more by using the equity release calculator, property value tracker chart and mortgage costs calculator.

Mortgage Best Buys

These are examples of mortgage products we can approach with many more offering interest rates and flexibility to meet your needs.

1.19% Fixed Rate
60% Loan to Value
£999 App Fee
2-Years Time
Reverts to 3.59%
1.16% Fixed Rate
60% Loan to Value
£1,525 App Fee
Until 01/11/2022
Reverts to 4.09%
1.17% Fixed Rate
60% Loan to Value
£1,025 App Fee
Until 31/09/2022
Reverts to 3.59%
1.18% Fixed Rate
60% Loan to Value
£1,034 App Fee
Until 31/10/2022
Reverts to 3.59%

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    Equity Release may involve a Lifetime Mortgage or a Home Reversion Scheme. To understand the features and risks, please ask for a personalised illustration. Equity Release may affect your entitlement to means tested state benefits and will impact on the size of your estate. For Equity Release London City Mortgages charge a fixed fee upon completion of £695. For Mortgages a fixed fee is charged on application. Typically this is from £295 up to £495 for the services selected.


    Equity Release - Equity Released from your home will be secured against it. Mortgages – Your home may be repossessed if you do not keep up repayments on your mortgage or other loans secured against it. Think carefully before securing other debts against your home. The information contained in this website is subject to the UK regulatory regime and is therefore intended for consumers based in the UK.


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