Bungalows and detached properties prove to be the best investment in Scotland, according to a report

 
Owners of bungalows have seen the value of their property rise by 8% from £166,018 in the second quarter of 2009 to £178,701 in the second quarter of 2010, according to the Bank of Scotland’s own house price data.
 
Detached properties recorded the second highest price rise at 7% while owners of terraced properties have experienced a fall of 5% in value, semi detached homes fell 1% and flat prices were unchanged over the period.
 
Detached properties recorded the largest average price increase, some 128%, since 2000, followed by terraced properties at 120%, the research also shows. Prices across all other property types have at least doubled in value over the past decade.
 
Flats have remained the most popular types of property purchased over the last ten years. This property type accounted for 36% of all home sales in 2010, up slightly from 35% in 2000.
 
‘It is notable that the property types which have seen the largest average price rises over the past year are likely to have benefited from greater demand from those buyer groups currently most able to enter the housing market,’ said Suren Thiru, Bank of Scotland Housing Economist.
 
‘The changing pattern of homes bought over the past decade highlights some significant socio-economic forces. For example, the rise in the proportion of sales of flats and terraced homes reflects the increasing trend for people to live alone,’ Thiru added.
 
The report also points out that the average price of a detached property is currently 75% above the average Scottish house price. Flats remain the least expensive property type with an average price that is 22% below the average for all properties.
 
Moving up the property ladder has become harder over the past decade. The gap between the most expensive property type, detached homes, and the least, flats, has widened from 114% to 124%.
 
Those looking to trade down later in life have seen their potential cash windfall more than double over the past decade. Trading down from a detached home to a bungalow would have earned an average windfall of £79,000 in 2010, an increase of 154% (£47,700) since 2000.
 
Terraced properties’ share of all property sales rose by most over the past decade, increasing from 17% to 20%. This property type has proved increasingly popular among those looking to get on the property ladder with the number of terraced homes purchased by first time buyers rising from 20% to 24%.
 
Detached homes’ share of all sales has fallen by most since 2000, down from 18% to 15%. This decline was driven by a large drop in the number of home movers buying such properties, the report says.
 
It reflects a decrease in the traditional family unit. Between 2001 and 2008, the number of households in Scotland occupied by a typical family of two adults and a child has declined by 4%. Over the same period, the proportion of single person households has risen by 10%.