A new research from Halifax shows that over the last five years the average price of a flat in the UK has risen by £75,074, equivalent to £1,251 per month. Despite their drop in popularity, the average price of a flat has grown from £157,061 in 2013 to £232,135 in 2018; accounting for 15% of all home sales.
Although last year six in every 10 property sales were either terraced or semi-detached properties, flats prices have still increased in value by 48%, compared to 39% for all property types over the same period. Meanwhile, terraced homes have seen average prices rise by £60,482 (41%, the second largest increase in percentage terms) since 2013, while detached homes recorded an increase of £73,638, although this is the smallest increase in percentage terms at 27%.
“Although flats have recorded greater price gains over the past five years than any other property type, semi-detached and terraced homes have remained the most popular choices for homebuyers,” said Russell Galley, Managing Director at Halifax.
“More than a third of first-time buyers are still choosing terraced homes as their first step on to the property ladder, but we’re starting to see more of them choose detached houses, as the number has crept up in recent years,” he added.
The most popular property type among first-time buyers remains the terraced properties, as they are the most affordable property type in the UK, with an average price of £208,311. They are followed by semi-detached (£225,123) and flats (£232,135). Outside London there is a different situation, as flats are the most affordable properties (£166,386), followed by terraces (£184,529).
The luckiest buyers are those in the North, managing to snap up a terraced home for less than £125,000, with terraces in the region costing £116,740. Five years ago, seven regions had the average price for a terraced home below £125,000.