The UK has seen a significant rise in the average price of flats, according to recent research by Halifax. The analysis found that flat prices have risen on average by £86,474 (£1,029 per month) since property prices were at their lowest in late 2008 – from £150,749 in Q4 2008 to £237,223 at the end of 2015.
The 57% increase in the average price of a flat is significantly higher than the 37% rise for all residential properties over the same period. Additionally, it means that buyers are on average now paying almost £20,000 (£17,978) more for a flat than for a semi-detached home, meaning only detached properties and bungalows command a higher price nationally.
Detached homes recorded the smallest rise (20%) over the past seven years, while terraced and semi-detached houses saw price rises of 38% and 34% respectively since 2008.
A considerable proportion of the national rise in flat values since 2008 is apparently due to the rapid increase in flat prices in London (62%). Flats represent a much higher share of the property market there than elsewhere; half of sales in the capital (50%) are of flats compared with the UK average of 17%.
If London performance is excluded, then price growth is greatest for terraced homes (31%); closely followed by semi-detached houses (29%). Both have outpaced flats (26%). Detached home properties remain the worst performer (19%) on this basis.
Prices have increased by around 20% across all property types since 2013 with the exception of detached properties, which have seen a much lower rise (8%).
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