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Prices of flats soar

Christina Hoghton
Written By:
Christina Hoghton
Posted:
Updated:
29/03/2016

Flat prices have risen by £1,000 per month since the financial crash

The average price of a flat in the UK has risen by a massive £86,474 since property prices were at their lowest – from £150,749 in 2008 to £237,223 at the end of 2015, according to Halifax.

This is the equivalent of over £1,000 a month.

The 57% increase in the average price of a flat is significantly higher than the 37% rise for all residential properties over the same period. Buyers are now paying £17,978 more for a flat than for a semi-detached home, meaning only detached properties and bungalows command a higher price nationally.

Detached homes recorded the smallest rise (20%) over the past seven years, while terraced and semi-detached houses saw price rises of 38% and 34% respectively since 2008.

Capital appreciation

The national rise in flat values since 2008 has been boosted by the rapid increase in flat prices in London, where they have soared 62%. Flats represent a much higher share of the property market in the capital than elsewhere; half of sales in London (50%) are of flats compared with the UK average of 17%.

When you take London out of the figures, price growth is actually highest for terraced homes (31%), closely followed by semi-detached houses (29%). Both have outpaced flats (26%).

Martin Ellis, housing economist at Halifax, said: “The high prices being paid for London flats have had a significant impact on the national picture when it comes to property type winners and losers. This is the result of more flats being sold in the capital and at the higher end of the market. Such is their popularity that flats continued to outperform other property types in the capital last year, with an annual price growth of 17% by the end of 2015.”