Flats and terraced prices up by a third in 10 years

Britain's flats have increased in value by an average of £394 per month over the past decade, the largest increase in cash terms of any property type, according to latest research from Halifax.

Related topics:  Mortgages
Amy Loddington
14th September 2013
Mortgages

The average price of a flat has risen by almost £47,500 from £133,483 a decade ago to £180,799 today.

The 35% increase in the average price of a flat is closely followed by terraced houses (32%). Detached homes have recorded the smallest rise over the past decade (17%).

Flats or terraces were the best performers in all but two regions over the last decade - West Midlands (bungalows) and the South East (semi-detached).

Whilst flats have increased most in price nationally since 2003, much of this rise can be attributed to the performance of flat prices in London where flats represent a relatively high proportion of the property market. Flats have outperformed all other property types in Greater London, East Anglia and Scotland.

Terraced homes were the best performing property type in a greater number of regions: six - the three regions of northern England (the North, North West and Yorkshire and the Humber), the East Midlands, Wales and the South West.

Martin Ellis, housing economist at Halifax, commented:

"While prices have risen for all property types during the past there have been a number of distinct periods of performance in the last ten years. Bungalows and detached properties fared best during the downturn between 2007 and 2009 as these property types are less popular with first-time buyers who were particularly badly affected by the tightening in mortgage credit criteria and availability at the height of the financial crisis.

"During the recovery 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 and who are therefore finding it difficult to finance a move to a larger home."

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