Hi there, I’m Darren Medland, and I’ve been chatting with a lot of folks around Sunholme Drive and Coast Road lately. There’s a common misconception floating around our local pubs and shops that the largest, most expensive houses always provide the greatest capital growth for their owners. People often assume that if you own a substantial detached house, you’re ahead in the property race by a significant margin.
But did you know that in NE28 9, the recent data shows a very different story? If you own a smaller terraced home, you are currently seeing some of the strongest market performance in our area.
The Big Picture: Why things are shifting
You might have heard on the news that the Base Rate is sitting at 3.75%. Think of this as the "cost of borrowing." Because it is higher than it was a few years ago, lenders are being more diligent regarding affordability. Locally, this influences the level of competition for sellers. It means families looking to move into those large detached homes near The Swallows need to have substantial deposits and robust financial standing.
Meanwhile, because prices across the UK are growing at about 2.4% while wages are rising by 3.5%, "entry-level" homes are becoming accessible to a wider pool of people. This has created a significant increase in market activity for our smaller properties in NE28 9.
The Price Gap: What can you get for your money?
Let’s look at the current figures in our neighbourhood. Right now, a detached house in NE28 9 averages about £279,167. In contrast, the average price for a terraced house is around £160,577.
That’s a difference of nearly £119,000. To put that in perspective, for the price of one large detached house, you could purchase a lovely terraced home and still have enough capital remaining to buy a fleet of brand-new luxury cars or fund a holiday every single year for the next two decades.
The 7-Year Surprise: The Terrace is King
This is the data that usually surprises my neighbours. If you bought a detached house in NE28 9 seven years ago, it is worth approximately £11,627 more today. That is a solid increase in equity.
However, if you bought a terraced house, your home is now worth £26,265 more than your purchase price. Despite the lower initial cost, the terraced house has gained more than double the actual cash value of its larger counterparts. In percentage terms, terraces have grown by nearly 20%, while detached houses have seen growth of about 4%.
Why is this happening?
It comes down to the balance of housing supply and buyer demand. With inflation at 2.8%, household budgets remain under pressure. When the cost of living rises, buyers seek "value," which shifts the level of competition for sellers.
- Terraced homes are currently the "best buy" because they attract the widest range of interest—from first-time buyers and couples to those looking to downsize.
- Semi-detached homes are also performing strongly, with values growing by £22,177 over the last seven years.
- Detached homes remain in demand, but because of the higher price point, there is naturally a smaller pool of buyers able to compete for the available stock.
What should you do?
If you own a terraced house or a semi in areas like Moor Drive or Swallow Court, you are sitting on a significant pocket of growth. This is a strong environment for those looking to sell and move up the ladder, as that extra equity provides a substantial deposit for your next move.
If you’re a first-time buyer, there is cause for optimism. While prices have risen, the fact that earnings are currently outstripping house price growth means that the "choice for buyers" is becoming slightly more manageable each month as affordability improves.
Looking Ahead
For the coming year, I expect the NE28 9 market to remain active. Current stock levels are relatively low compared to the volume of buyers in the market—if no further homes were listed, we would soon see a significant shortage of properties currently for sale. This indicates a high level of competition for sellers, particularly in the "middle" of the market where our semis and terraces continue to be the star performers.
If you’re curious about the current market value of your home and the level of competition for your specific property type, pop into the office for a catch-up!