Flats prices ahead other house-types in UK with 35% average increase

In the UK, especially in London, flats and terraced homes have outperformed other house-types since 2009, with the average price increasing by almost £50,000 in the last decade, a new research conducted by Halifax has revealed.

Ray Clancy, editor, Property Wire, an online property journal, explains that flats have increased in value by an average of £394 per month, the largest increase in cash terms of any property type.

Clancy adds that the average price of a flat has gone up from £133,483 a decade ago to £180,799 currently, pointing out that this 35 percent increase in the average price of a flat is closely followed by terraced houses at 32 percent, while detached homes have recorded the smallest rise over the past decade at 17 percent.

“Flats or terraces were the best performers in all but two regions over the last decade, with bungalows topping the performance table in the West Midlands and semi-detached houses top in the South East,” he said.

“Whilst flats have increased most in price nationally since 2003, much of this rise can be attributed to the performance of flat prices in London where flats represent a relatively high proportion of the property market. Flats have outperformed all other property types in Greater London, East Anglia and Scotland.”

Clancy notes that terraced homes were the best performing property type in a greater number of regions including the North of England, the North West, Yorkshire and the Humber, the East Midlands, Wales and the South West.

All property types recorded substantial price falls during the housing market downturn between 2007 and 2009, but bungalows fared best. During this period, the average price of a bungalow fell by 21 percent to £180,271, terraced house prices were down 33 percent, and flat prices fell by 32 percent.

The research points out that the tightening in credit criteria and the reduction in mortgage availability following the onset of the financial crisis made it more difficult for first-time buyers in particular to enter the market and they are major buyers of flats and terraced properties.

By: CHUKA UROKO