Save, make, understand money

First-time Buyer

Flat prices see biggest leap

Kit Klarenberg
Written By:
Kit Klarenberg

The prices charged for flats have risen more than for any other property type in the last decade, according to Halifax.

Analysis of the property market found that the typical flat has increased in value by 60% in since 2005, well ahead of the 38% average for all properties.

The typical flat is now worth £233,424 compared to £145,874 a decade ago. This represents an £730 increase every single month.

London – home to the fastest rising flat prices – has driven the increase in the cost of flats. Some 49% of housing stock in the capital is flats compared with a UK average of 17%.

A typical flat in most northern regions costs less than £145,000 while a London pad will set you back more than £370,000.

Detached homes have seen the smallest increase (21%) in the last decade, while the price of bungalows has increase by 28%.

In terms of sales, semi-detached and terraced homes have remained the most popular types of property purchase. These two types represent a combined 59% of all home sales in 2015; up marginally from 58% in 2005.

Martin Ellis, housing economist at Halifax, said the London market continued to skew the UK’s overall property picture.

“Flats have recorded larger prices gains over the past ten years than any other property type,” he said. “The national increase in flat prices has been led by London where flats account for roughly one in two property sales; substantially higher than for the country as a whole.

“Overall, semi-detached and terraced homes have remained the most popular types among purchasers. First-time buyers have switched to some extent away from flats –reflecting their large price increases – towards semi-detached homes over the last decade.”