Why do two-bed terraced houses sell faster than other homes?

Research from Zoopla shows that two-bed terraced homes are the fastest-selling property type in England and Wales, with a sale agreed in just 27 days compared to the national average of 32 days. This matches the pre-pandemic time to sell.

Zoopla’s time to sell measures the time between the property being first listed for sale and a buyer and seller agreeing a sale subject to contract - it takes several more months for these sales to complete. Scotland has been excluded from the analysis as homes often sell faster due to a different system when a property is under offer.

Two-bed terraced homes have consistently been the fastest-selling home in more expensive regions like London and the East of England. However, they’re now also the fastest-selling property type in more affordable regions in the UK, signalling a shift in buyer requirements as a result of higher borrowing costs. 

In the past three months, two-bed terraced homes were the fastest-selling property type in six of the 10 regions in England and Wales. This property type is selling fastest in Yorkshire and The Humber (24 days), London (25 days) and The West Midlands (26 days). 

In the past three months, 60% of sales agreed for a two-bed terrace were within 30 days of being listed, highlighting their popularity. This is compounded by the fact that this property type makes up only 7% of listings over the past three months, with their relative rarity driving competition amongst buyers. 

Two-bed terrace homes are also appealing to various types of buyers. For first-time buyers, they remain a good value-for-money option for those with limited funds (the average two-bed terrace home asking price is £200,000 vs £275,000 for a two-bed flat). 

Four-plus bed detached houses are currently the slowest-selling property type at a national level and although flats typically take longer to sell than houses, these are the fastest-selling property type in the North West, including in urban areas like Manchester, Liverpool and Warrington. 

Time to sell varies from season to season and typically, homes sell a week faster in the first six months of the year. Zoopla expects fewer homes to achieve a sale within 30 days in the second half of 2024. 

Mortgage rates have fallen to an average of 4.5% to 5% which is enough to support more sales. A reduction in the base rate later this year could boost market sentiment and support demand and the pace at which sales are agreed.

Izabella Lubowiecka, Senior Property Researcher at Zoopla, comments: “The average UK home sells in 32 days after being listed for sale. This is faster than a year ago as market activity improves. Larger houses and flats take an extra week to find a buyer. Serious sellers who want to sell quickly should discuss this with their agent who can advise on best price to sell more quickly.”