The most recent research from the Halifax has shown how different property types have increased in price during the last seven years.
Data from the report indicates that flats have seen the most prominent rise- increasing in value by 53% during the last seven years. This was in comparison to 39% for all property types.
Increases
Flats have typically increased in value by £1,008 per month, from the £159,292 recorded in the final quarter of 2009, to £243,936 in the last three months of 2016.
Terraced homes saw the next biggest rise over the period, increasing in value by 43% over the seven years. On the other hand, detached homes saw the smallest increase, of 19%.
Much of the rise in the price of flats since 2009 can be attributed to the major increase in flat prices in London, where values have risen by 65%. In addition, flats make up 48% of all sales of property in the capital, in comparison to the UK average of just 11%.
The average price of a flat in London currently stands at £398,038, with the price in the rest of the UK much lower at £167, 144. In fact, should London be excluded from the data, terraced homes saw the greatest increase over the period (41%), followed by flats (35%).
Regional Rises
By region, flats have been the best performing property type since 2009 in five of the eleven regions assessed. These were:
- North- 31%
- North West – 37%
- South West – 33%
- Yorkshire and the Humber – 30%
- Scotland – 21%
Terraced houses rose quickest in:
- London – 73%
- East Anglia – 46%
- East Midlands – 35%
Six in ten property transactions are for terraced or semi-detached properties. This said, semi-detached homes have risen in popularity with first-time buyers, making up 30% of purchases in 2016 – a rise from 28% in 2009.
Flats see largest increase in pricing since 2009
Affordability
Averaging at £215,690, terraced properties are the most affordable property type in the UK. This was followed by semi-detached homes (£225,070) and flats (£243,936).
Outside of London, flats are most affordable (£167,144) followed by terraced housing (£185,116).
Martin Ellis, Halifax housing economist, said: ‘Nationally, terraced and semi-detached homes are the most affordable and popular homes with buyers accounting for 60% of sales during 2016. However average price growth for flats, helped by the London market, have outperformed all other property types since 2009.’[1]
‘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,’ he added.[1]
[1] http://www.propertyreporter.co.uk/property/flat-prices-up-over-50-since-2009.html