21 Sep

Flat prices on the rise

Flat prices on the rise

Flat prices across the UK have risen substantially over the past decade, according to new figures.

Data from the Halifax building society shows that the average price of a flat has risen by almost £51,000 over ten years - equal to an increase of £435 per month.

The average flat price has increased from £157,172 in 2004 to £208,169 and shows they have risen more than other forms of property.

According the research by the Halifax, detached homes have increased by 12 per cent and bungalows have risen in value by 13 per cent.

Overall, residential prices have increased by 15 per cent but flats have seen a 32 per cent improvement in value.

It is expected that the increase in the price of flats is largely down to the property boom in London.

Within the capital, flats represent a significant proportion of the local property market. 

Outside of London, terraced homes saw the biggest increase in value, especially in the North West, Yorkshire and the Humber, West Midlands, East Midlands and East Anglia.

However, all of the property types recorded a drop in value during the property recession between 2007 and 2009.

The price of terraced houses fell by 33 per cent and flats decreased in value by 32 per cent, while bungalows fell by an average of 21 per cent and detached homes were down during that period by 26 per cent.

In particular, during the recession first-time buyers were hit by increased in credit availability and the fall in the availability of mortgages.

"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," said Martin Ellis, housing economist at the Halifax.

"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 home owners who bought for the first time around the peak in the market. Many of these home owners are still finding it difficult to finance a move to a larger home," he explained.ADNFCR-1222-ID-801751490-ADNFCR

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