22nd September 2014
The average price of a flat in the UK has surged by more than £50,000 over the past decade according to research from Halifax.
The lender’s analysis found that since 2004, the cost of the typical flat has risen from £157,172 to £208,169 today, marking a 32% increase – more than double the 15% rise for all residential properties over the same period.
During the 10-year period, detached homes and bungalows have recorded the smallest rises, at 12% and 13% respectively.
Whilst flats have increased most in price nationally since 2004, much of this rise is due to the performance of flat prices in London, where they represent a relatively high proportion of the property market.
Terraced homes have been the best performing property type in the greatest number of regions (five of the 12): North West, Yorkshire and the Humber, West Midlands, East Midlands and East Anglia.
Semi-detached and terraced homes have remained the most popular types of property purchased over the past 10 years say Halifax. These two types represent 60% of all home sales in 2014; up from 56% in 2004. For first-time buyers, semi-detached homes have risen in popularity, accounting for 29% of purchases in 2014 compared with 25% in 2004 while detached sales have fallen from 21% of all property sales to 16% over the past decade.
But during the recovery since 2009, prices have improved across all property types with flats recording the largest increase between 2009 and 2014, at 43%. Terraced properties, with a 31% rise experienced the next biggest uplift. In contrast bungalows have seen the smallest gain, with just 15%.
Martin Ellis, housing economist at Halifax, said: “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: flats and terraces.
“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 homeowners who bought for the first time around the peak in the market. Many of these homeowners are still finding it difficult to finance a move to a larger home.”
Table 1: UK house prices by property type, 2004-2014
|Property Type||Q2 2004 (£)||Q2 2007 (£)||Q2 2009 (£)||Q2 2014 (£)||2004-2007 % Change||2007-2009 % Change||2009-2014 % Change||10 year % Change (2004-2014)|