9th
Jun 2017
A major lender claims that across the UK the average price of flats has rocketed by 53% since 2010, from £159,292 to £243,936.
The lender's latest research also claims that the next best investment are terraced homes that have seen their average price increase by 43% in the same period, but detached homes have fared much worse with a rise of only 19%.
The dramatic rise in flats' prices (53%) obviously caused the property type to surge ahead of the overall national average of 39%. A major factor in the steep rise is more than likely down to London's flats increase which has rocketed to 65 %, and currently in the capital this accounts for 48% of all sales. Across the rest of the UK flats' sales stand at 11%.
On average flats sold in London cost £398,038, which is £230,894 more than buyers have to pay in the rest of the UK.
If London is taken out of the picture, terraced homes' price increases are the highest at 41% and flats as runners up with 35%.
Across the UK's regions flats have consistently out-performed all other residential property types since 2009 in five out of the eleven.
In the North East flats accounted for 31% of sales with the North West performing well with 37%. Yorkshire and the Humber had sales of 30%, the South West was next with 30% and Scotland had 21%.
The lender's 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, has 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."
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