Flat prices up almost £85,000 since 2009
The average cost of a flat stood at £243,936 at the end of 2016, up from £159,292 in 2009 – an increase of £84,644 or 53%.
This is significantly greater than the 39% rise for all other property types over the same time period, according to the study by Halifax.
Terraced homes recorded the next largest increase in average prices with a rise of 43% and detached homes the smallest rise of 19%.
The report said the dramatic spike in flat prices nationally was driven by London flat prices rising by a staggering 65% in seven years. In the capital, where flats represent just under half of all sales, the average price is £398,038, compared to £167,144 in the rest of the UK.
Terraced and semi-detached homes remain the most popular property type, representing 60% of all home sales in 2016.
While terraced properties remain the most popular property type for first-time buyers, the proportion of sales has fallen over the past seven years from 42% to 37%, the research said. In contrast, semi-detached properties have become more popular, accounting for 30% of purchases in 2016, up from 28% in 2009.
Martin Ellis, Halifax housing economist, said: “There has been an increasing trend for first-time buyers to choose semi-detached homes over the past seven years, whilst terraced homes have shown a decline in popularity. The rise in age of a typical first time buyer may partly account for this change in preference towards the family-friendly semi.”