The Great OL2 Space Race: Why Flats are the Surprise Sprint Kings This June
Morning, neighbours! It’s Emanuele and Michelle Vinci here. We were just strolling through Heyside today, watching the sun bounce off the rooftops of some lovely stone cottages. It’s a bit of a "good news, bad news" kind of morning in the property world. The good news? Our leafy corners of OL2 are holding their own beautifully. The slightly tougher news? The cost of borrowing money is still keeping a bit of a lid on how high prices can fly.
Did you know that even though a giant detached house looks like the king of the castle, it’s actually the smaller homes that are winning the race right now? It’s a bit like seeing a little Mini Cooper overtake a big luxury lorry on the way up to Shaw!
The Asking Price Ladder
If you’re looking to move within OL2, the price gaps between different "rungs" of the ladder are quite eye-opening. Right now, if you want a detached house, you’re looking at an average of £358,513. But if you look at a semi-detached, the price drops to £239,621.
Think about that for a second—the "gap" is nearly £119,000! That’s basically the price of a whole extra house in some parts of the country. For that extra money, you’re usually buying "the sound of silence"—no shared walls and a bit more elbow room in the garden. For those just starting out, a terraced home sits at £163,666, while a flat averages £143,632.
The 7-Year Sprint: Who Won?
This is where it gets really interesting. We looked back at what homes in Royton and Heyside were worth seven years ago versus today. You might assume the biggest houses made the most money, but the numbers tell a different story:
- Flats: These are the gold medal winners! They grew by 24.3%, adding over £28,000 in value.
- Semi-detached: A very respectable second place at 15.2% growth (up £31,693).
- Terraced homes: Grew by 14.2% (up £20,389).
- Detached houses: The "slow and steady" group, growing by 12.1% (up £38,822).
Wait—how can a flat grow by 24% while a big house only grew by 12%? It’s all about what people can afford. Because the "Bank of England" has kept the cost of mortgages a bit higher (the base rate is at 3.75%), people are flocking to smaller, more affordable homes. This high demand pushes the prices of flats up much faster than the expensive "dream homes" on streets like Bennett Way.
What’s Happening Over Our Back Fence?
Nationally, house prices have dipped a tiny bit (down 0.4%), but here in OL2, we aren’t seeing that same drop. Why? Because while inflation is at 3%, people's wages are actually growing a bit faster at 3.7%. This means locals in Shaw and Royton are feeling just a little bit more confident about their pockets each month.
However, because it’s harder to get a huge loan from the bank, the "first-time buyer" market is the engine room of our local economy. When more people can only afford to buy a flat or a terrace, those prices get pushed up.
What Should You Do?
- If you own a flat: You are sitting on a winner! With a 24% jump over seven years, you might have more "spare cash" in your home than you realised. This could be the perfect time to trade up to that terrace.
- If you own a detached home: Don't panic that your growth % is lower. You’ve still gained nearly £39,000 in value! Because fewer people can afford these right now, it’s a "balanced" market—meaning you have time to find the right buyer without a frantic rush.
- First-time buyers: It’s tough out there, but terraced homes in OL2 at £163k offer incredible value compared to the UK average of £284k. You get a lot more "house" for your money here!
Looking ahead to the next 12 months, we expect semi-detached homes to be the ones to watch. They are the perfect "middle ground" for families who want more space than a terrace but can't quite reach the price of a detached home in Royton.