The average price of UK flats has risen by 53 per cent in the past 7 years, from £159,292 to £243,936, according to the latest research from Halifax.
Terraced homes have recorded the next largest increase in average prices with a rise of 43 per cent on average over the past seven years, whilst detached homes have seen the smallest rise at 19 per cent.
The swiftly rising asking price for flats has led to the property type pulling ahead of others in the UK, up 53 per cent in comparison to the national average of 39 per cent. This strong rise is likely due to the rapid increase in flat prices in the capital, at 65 per cent. In London, flats represent 48 per cent of all sales, significantly higher than the UK average of 11 per cent.
The average price for a flat in London is £398,038, leading to buyers shelling out £230,894 more than flat buyers across the rest of the country.
When London is excluded from consideration, price growth is most significant for terraced homes at 41 per cent, with flats in second place at 35 per cent.
Regionally, flats have been the best performing property type since 2009 in five out of the 11 regions. In the North 31 per cent of sales were flats, whilst in the North West it was 37 per cent. Yorkshire and the Humber, the South West and Scotland were 30 per cent, 33 per cent and 21 per cent respectively.
Halifax housing economist, Martin Ellis, said: ‘Nationally, terraced and semi-detached homes are the most affordable and popular homes with buyers accounting for 60 per cent of sales during 2016. However, average price growth for flats, helped by the London market, have outperformed all other property types since 2009. There has been an increasing trend for first time buyers to choose semi-detached homes over the past seven years, whilst terraced homes have shown a decline in popularity. The rise in the age of a typical first time buyer may partly account for this change in preference towards the family-friendly semi.’