Flats in the UK have seen the biggest average price rise in last decade

The average price of flats in the UK has risen by 60% since 2005, compared with an average of 38% for all properties, according to new research.

The report from the Halifax, one of the UK’s leading home lenders, also shows that detached homes have seen the smallest increase at 21% while bungalow prices rose by 28%.

The figures show that the increase for flats over the last decade is £87,550 or £730 per month from £145,874 in 2005 to £233,424 today, but a big proportion of this is due to the rapid increase in flat prices in London which are up by 67%.

A typical flat currently costs less than £120,000 in the North, East Midlands, Wales and Yorkshire and the Humber, and between £120,000 and £145,000 in the North West, West Midlands, Scotland and East Anglia. At £370,281, a typical London flat is considerably more expensive than flats anywhere else in the UK.

While flats have been the best performing property type over the past decade in Greater London, Scotland and the South West, there are regional differences. Semi-detached properties have risen most in value in the South East, East Anglia and the East Midlands, whereas terraced homes have been the best performing property type in five of the 11 regions, the North, North West, Yorkshire and the Humber, West Midlands and Wales.

The average price of a terraced home is between £119,000 and £143,000 in all regions outside southern England, the data also shows.

Semi-detached and terraced homes have remained the most popular types of property purchased over the past 10 years. Combined, these two types represent 59% of all home sales in 2015, up marginally from 58% in 2005.

Semi-detached homes have risen in popularity among first time buyers, accounting for 28% of purchases in 2015 compared with 21% in 2005. However, flat sales have fallen from 20% of all property sales to 17% over the past decade.

‘Flats have recorded larger prices gains over the past ten years than any other property type. The national increase in flat prices has been led by London where flats account for roughly one in two property sales, substantially higher than for the country as a whole,’ said Martin Ellis, housing economist at the Halifax.

‘Overall, semi-detached and terraced homes have remained the most popular types among purchasers. First-time buyers have switched to some extent away from flats, reflecting their large price increases, towards semi-detached homes over the last decade,’ he added.