Cost of the average flat up by more than £50,000 over the past 10 years

22nd September 2014

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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)
Terraced 149,067 209,917 140,690 183,738 41% -33% 31% 23%
Bungalows 183,661 229,520 180,271 208,115 25% -21% 15% 13%
Semi-Detached 166,968 216,872 159,251 192,571 30% -27% 21% 15%
Detached 284,449 359,497 266,060 318,264 26% -26% 20% 12%
Flat 157,172 215,439 146,024 208,169 37% -32% 43% 32%
All Properties 186,478 241,838 169,533 214,450 30% -30% 26% 15%

 

1 thought on “Cost of the average flat up by more than £50,000 over the past 10 years”

  1. Paul C says:

    Hi Shaun,
    I misleading subject really, your note about London says it all. I think popularity of homes are driven by need to be near work, schools, amenities etc. The typology is is driven by density of building and any inferred relationship is a byproduct.

    Still is does create some estate agent “patter” for the mortgagee victims that walk across the threshold. It kinda reminds me of going into a car showroom a few years back and being told there are no GTI’s any more, that fad has passed and there’s only shopping trolley cars these days (note they didn’t have any performance cars in that sales room). These days there are all kinds of performance sub-brands offered by every manufacturer (Abarth, AMG, VXR …etc).

    I’d like to ask your audience, when we actualy start building homes again in the UK (i.e. over 500K units per annum) what kind shall we make? In recent housing association grant awards the biggies did not bid to build any significant quantity because the Government subsidy was too low per unit.

    In the last few years we have made principally two kinds, middle class premium mini-estates with olde-world features and stone OR 3-4 storey brick high-density flats with resticted street parking. What kind of house should we build?
    Paul

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