Are Bungalows a Good Investment?

Get the lowdown on all things bungalow, including how popular they are in the UK, what makes them so appealing as investment opportunities and what property developers could be doing to meet demand.

Table of Contents

• What is a bungalow?

• Why are bungalows so expensive?

• Do bungalows hold their value?

• Are bungalows a good investment in the UK?

• Is there a demand for bungalows?

• How to sell your bungalow quickly

What is a bungalow?

A bungalow is a single-storey property that is normally built within a large open space like a garden or yard (or both). They tend to be smaller than typical houses in terms of footprint, as they only contain one floor.

A general misconception with bungalows is that they’re the same as a cottage, but this is not the case. The main difference between the two is that a cottage can have multiple storeys, but a bungalow is only built with one.

Here’s a list of the key characteristics of a bungalow so you know what to look out for:

Do bungalows hold their value?

Bungalows tend to hold their value quite well for a number of reasons. In fact, they can often do so more effectively than other types of houses.

One of the main factors here is the scarcity of new bungalows in the UK, since developers tend to lean toward maximising the usage of each plot of land—the result being that they build upwards rather than outwards so they can fit more houses onto each plot.

With an ageing population, too, there will always be a demand for downsizing as we reach our later years. People look to bungalows because of their lack of stairs and general accessibility, so those needs can create a competitive market for buyers.

As we mentioned earlier, bungalows also offer a lot of potential for development, which means the value can only increase with the size of the property over time. Buyers who might have one eye on retirement, for instance, could look at a bungalow and see the potential for adding rooms, outhouses or even new floors if they build into the attic.

This all means that bungalows tend to hold their value over time, if not showing greater increases than other property types—many buyers see them as a long-term investment opportunity for these reasons.

In fact, if we look at simple average house prices in England and Wales on Statista, bungalows have increased in value by more than any other house type except detached houses since 1986.

Are bungalows a good investment in the UK?

A good investment for one person won’t be a good investment for another, so the answer is a matter of opinion. Factors like an ageing population and increasing development potential do point towards wise investments, though. 

According to research by McCarthy Stone in 2020, 70% of over-65s would consider moving to a bungalow, which was a 10% increase on the previous year. Some of the main reasons included: 

Such growing demand means bungalows will keep holding their value, if not increasing it, which can make them a great investment for some buyers.

What are the advantages of living in a bungalow?

When making a decision, it’s always important to weigh up whether the pros match your priorities. Here are some of the upsides to help you decide whether a bungalow is the investment for you:

✔ Space and privacy: Larger and more enclosed gardens can lead to a better quality of life

✔ Less maintenance: Something as simple as not having an upstairs to hoover makes all the difference when trying to maintain a property

✔ Potential for modifications and extensions: Greater growth potential can improve your living quarters as well as your chances of selling again down the line

✔ Cost-effectiveness: Lower bills are attractive to anybody and everybody—need we say more?

Is there a demand for bungalows?

Demand in the housing market is ever-changing, so it’s important to bear this in mind if you are looking to buy or sell a bungalow.

The aforementioned research by McCarthy Stone also found that the number of bungalows being built in the UK at the time had fallen, with only 1,833 new bungalows built in 2020—this represented a drop of 23% in new bungalows compared to the previous year and a staggering 80% decrease since 2000.

This suggests bungalows are decreasing in popularity with new-build property developers, as they don’t think they are an investment worth their while. This is backed up years down the line by a report from the National House Building Council (NHBC) that shows developers concentrating more on other house types in the private sector—the number of bungalows registered in 2024 decreased year-on-year by 11%.

It has to be stated that the 2020 McCarthy Stone survey was only conducted amongst over-65s, so it’s not known if there’s really a demand outside of this age group. The survey also says they would ‘consider’ a move and not that they’re actively wanting to move to a bungalow.

However, a more recent McCarthy Stone survey published in 2025 revealed an interesting increase in the demand for bungalows: 

• More than nine million older people (72%) want more retirement bungalows to be built

• Nearly five million older people (38%) would like to move to a retirement bungalow

Based on these figures, the demand far outweighs the supply in the UK, as people are crying out for bungalows that just haven’t historically been there.

How to sell your bungalow quickly

If you have a bungalow you need to sell, you might well be buoyed by that news. You can even sell your bungalow in a matter of days if you sell to a cash buyer like us.

The Property Buying Company is here to help you make the most of your property and keep stress to a minimum when it comes to selling it. That’s why we handle everything for you, including your fees, and it all starts with a free cash offer.

Have a read through our Trustpilot reviews from people like you and don’t hesitate to get in touch if you have any questions.