Restoring confidence in flats among first-time buyers is essential if the housing market is to regain momentum, according to Hill Group’s CEO, Andy Hill (pictured).

He says flats were once the first step on the property ladder for many buyers but have fallen out of favour in recent years.

Stepping stones

“[Flats] used to be the stepping stones, [but] lots of first-time buyers now try to move further out and get a small house. We need to get market confidence up in apartments and [promote] that they are safe.”

His comments in The Times come as the flat market continues to lag behind the rest of the housing sector. Research from Zoopla shows the average price of a house has risen by 43% since 2016, while flat prices have increased by just 10%.

Hill says the popularity of flats has declined over the past decade amid fire safety concerns following the Grenfell tragedy and growing dissatisfaction with the leasehold system.

He adds that the quality of the product does have to improve and that developers also need to respond to changing buyer expectations.

We’ve got to get apartment living back on the agenda as being seen as a good option.”

“If we want to build at pace and build large numbers [of homes] close to railway stations, we’ve got to get apartment living back on the agenda as being seen as a good option, whereas at the moment it isn’t.

“One thing we learned from Covid was that we would never build another flat without its own personal outside space. It needed an event like that to realise how important that is, even if it’s not huge.”