The average price for a flat has increased by £75,074 in just five years and rising faster than any other property type in the country.
Data from Halifax shows the popularity of flats has driven prices higher by £75,074 over the last five years with an average price in the UK of £232,135.
Not surprisingly prices of flats in London are up the most rising 54% or £137,887 and contribute significantly to the national increase, with average prices of £393,235 compared to £255,348 in 2013.
For home movers wanting to trade up when prices are rising, will find their next property is more expensive which means they would need a larger deposit or mortgage.
Terraced houses the most affordable
Terraced homes remain the most affordable property type in the UK with an average price of £208,311 whereas semi-detached homes cost £225,123 and flats are £232,135.
For first time buyers, semi-detached homes are selected by 29% of buyers and terraced homes are more popular and selected by 37% of all purchasers.
The following table from Halifax shows the rise of house prices for different property types over the last five years to 2018.
| Property type | 2013 |
2018 |
Change |
|---|---|---|---|
| Flats | £157,061 | £232,135 | 48% |
| Terraced | £147,829 | £208,311 | 41% |
| Semi-Detached | £162,141 | £225,123 | 39% |
| Bungalows | £183,712 | £254,313 | 38% |
| Detached | £274,404 | £348,042 | 27% |
Countrywide terraced house prices have increased 41% over fives years and perform best in East Anglia (62%), Greater London (56%), South East (50%), West Midlands (40%), Yorkshire and the Humber (35%) and Wales (30%).
The most expensive terraced flats are in London with an average price of £471,119 compared to the cheapest in the North at £116,740 and even below the stamp duty threshold.
For remortgage buyers higher property values give them an opportunity to release capital which they can use to improve their home such as adding an extension or new kitchen.
For buy-to-let landlords with existing properties the rise in house prices creates more equity which they can benefit from if they sell in the future.
Demand for flats is waning
Russell Galley Managing Director, Halifax said, although flats have recorded greater price gains over five years than any other property type, semi-detached and terraced homes have remained the most popular choices for homebuyers.
The popularity of flats appears to be waning across the regions as they are the best performing property in only two out of 11 regions, North West (51%) and the South East (50%), says Mr Galley.
Home movers are more likely to buy a semi-detached house (30%), then detached house (29%) followed by terraced (23%) and only one in ten buys a flat (9%).
In London detached homes have an average price of £723,832 although the largest rise by value is for semi-detached houses increasing 51% or £181,471 in five years to £537,299.
Greater demand for detached and semi-detached homes has increased prices to the benefited older homeowners and equity release buyers are able to stay in their homes while accessing wealth in their property rather than downsizing.
What are your next steps?
Call our LCM mortgage brokers if you are a buy-to-let landlord with a property, remortgaging and want the best mortgage deal, buying your first home or you are planning to move home.
For equity release buyers our London City Mortgage advisers can recommend lifetime mortgages allowing you to receive cash from your home to repay an interest only mortgage or help your children start or expand a business.
Learn more by using the mortgage cost calculators, property value tracker chart and equity release mortgage calculator. Start with a free mortgage quote or call us and we can take your details.
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