Flats outstrip house price growth

Mortgage Introducer

September 23, 2015

The average flat price has risen by 60% since 2005 compared to 41% for terraced homes, 25% for semi-detached homes, 18% for bungalows and 12% for detached homes.

Data on flats is dictated by the London market, where 49% of sales were made on flats compared to a UK average of 17%.

In London the cost of a typical flat has risen by 67% from 2005 to 2015.

Rising flat prices have put off a number of buyers, as 17% of buyers bought flats in 2015 compared to 20% over the last decade.

First-time buyers are increasingly turning to semi-detached and terraced homes instead, as they made up 28% of purchases in 2015 compared to 21% in 2005.

Martin Ellis, housing economist at Halifax, said: “Flats have recorded larger prices gains over the past ten years than any other property type. 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.”

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