Flat prices surge fastest
The increase has been driven by London (44%), while other areas including the North (13%), North West, 16% and Yorkshire and the Humber (3%) saw a more modest increase.
The average UK flat price has risen by £51,000 since 2004 from £157,172 to £208,169. This represents a 32% increase – more than double the 15% increase for all residential properties over the same period.
In the capital flats command a price of £328,800, while they are cheapest in the East Midlands at £94,500.
Semi-detached and terraced homes were the most popular types of property purchased over the past ten years, representing 60% of all home sales in 2014.
Martin Ellis, housing economist at Halifax, said: “There has been a significant increase in the number of first-time buyers since 2010 compared with a modest decline in the number of those moving home.
“This difference is reflected in a bigger rise in prices over the past five years for those property types that are most popular with first-time buyers: flats and terraces.
“Since 2009, larger property types – such as detached homes, semis and bungalows – have underperformed flats and terraces.
“The demand for such properties has been partly constrained by a widespread lack of equity amongst homeowners who bought for the first time around the peak in the market.
“Many of these homeowners are still finding it difficult to finance a move to a larger home.”
Flats cost between £100,000 and £110,000 in the North, Yorkshire and the Humber and West Midlands.