Bungalows adding most value to buy to let portfolios?

01 September 2010

Written by Steve Olejnik

Bungalows saw the largest price increases between July 2009 and June 2010, new research has shown, which could have lifted the value of some investors' buy to let portfolios.

According to a study conducted by the Bank of Scotland, the average worth of the ground-floor houses has increased by eight per cent over the 12 month period.

Housing economist at the organisation Suren Thiru explained the value of the properties is likely to have been lifted by demand from people most able to enter the market.

The type of abode that saw the second-highest increase in price was detached homes - the worth of which rose seven per cent.

However, the most commonly purchased form of accommodation was flats, which have remained the most popular with buyers for ten years, the institution stated.

"The rise in proportion of sales of flats and terraced homes reflects the increasing trend for people to live alone," the expert explained.

Properties in university towns have also seen a stronger-than-average increase in value, with the value of abodes in Aberdeen up almost 40 per cent compared with five years ago, according to Lloyds TSB statistics.

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