AS Gordon Brown calls for a 'home-owning democracy', the demand for affordable homes across the country is fuelling an increase in flats, maisonettes and family-friendly terraced houses.

According to National House-Building Council’s latest statistics, flats and maisonettes made up of 44 per cent of new homes started in the UK in the first quarter of this year, double the number seen in 2000. Also, the number of terraced properties started in the quarter exceeded the number of semi-detached and detached homes.

During the first quarter of this year, 20 per cent of all new homes started were terraced houses – one per cent higher than the percentage of detached homes started and five per cent higher than the percentage of semi-detached homes started in the UK.

"The drive for more affordable homes is being intensified by the number of first-time buyers and a rise in the number of people living alone," said Imtiaz Farookhi, NHBC’s chief executive.

"This has led to a shift away from traditional semi-detached and detached homes towards a greater number of flats, maisonettes and traditional terraced housing schemes."

Additional statistics by NHBC for show that the number of applications to start new homes increased when compared with figures for the same quarter last year.

Based on actual selling prices, during the first quarter of 2007 the proportion of new homes in Great Britain priced at over £150,000 went up to 72 per cent, an increase on the same period in 2006 (69 per cent).

First-time buyers found their ability to buy dropped in the first quarter of this year. NHBC’s first-time buyers’ ability to buy index decreased by four points during the quarter to 54 (the figure for quarter four 2006 was 58).

The index is based on a formula which takes into account the average cost of homes bought by first-time buyers, average income and mortgage interest rates from the Nationwide Building Society. The higher the index, the greater the ability to buy.

The average number of daily sales of new homes in the UK for the first quarter of this year was 650, an increase of 14 per cent on the same period in 2006 (571).