Record price gap between flats and houses
Zoopla says houses are now worth 1.7 times flats, making it the largest difference in 30 years.
The price gap between flats and houses is at its widest in 30 years – since records began – , according to Zoopla.
House prices have risen 43% since 2016, but for flats it is just 10%, resulting in a 1.7 times difference between the two property types.
Widens further
The gap widens even further to 2.3 times excluding London, with the West Midlands topping the charts at 2.5 times. London sees a gap of 1.9 times, with flats being the only realistic option for most buyers, Zoopla says.
Across the country, the average flat costs £193,000, verses £327,000 for a house.
The ratio has barely moved in Scotland, where the long leasehold system doesn’t apply. Scottish flats also sell more quickly as a result – 15 days verses the wider average of 40 days for flats.
The gap between house and flat prices has never been wider.”
Richard Donnell, Executive Director at Zoopla, says: “The gap between house and flat prices has never been wider, and for buyers who are prepared to do their homework, that presents an opportunity.
“For many, flats remain the main route into home ownership, particularly in London and the South East where the cost of buying a house is higher.
“Buying a leasehold flat is more complex than buying a house – lease length, service charges and ground rent terms all matter and vary significantly from one property to the next. This complexity is not the same as risk, and the leasehold system is being actively reformed.”
