Do you own a flat? If so, you could be onto a winner, because research from Halifax has revealed that flat prices have increased in value faster than all other property types over the last decade.
Prices up 60% in 10 years
The figures show that the price of an average flat has risen by a whopping £87,550 in the last 10 years, with it now having a typical selling price of £233,424, up from £145,874 in 2005. This equates to an increase of 60% since 2005, a striking increase when compared with the 38% price increase for all properties.
At the other end of the scale, bungalows and detached homes have recorded the smallest price rises over the last decade, having risen by 28% and 21% respectively, which just shows how impressive the rise of flats has been.
However, it's worth noting that this may not be the case across the country – much of the increase in flat prices has been driven by the London market, where prices have increased particularly rapidly in the last 10 years and where flats represent a relatively high proportion of the overall market (49% of sales compared with the UK average of 17%).
Let's take a look at a few examples. The figures show that a typical flat currently costs less than £120,000 in the North, East Midlands, Wales and Yorkshire and the Humber, and between £120,000 and £145,000 in the North West, West Midlands, Scotland and East Anglia. Meanwhile, a flat in London is considerably more expensive than anywhere else, currently priced at an average of £370,281, which could be skewing the overall results somewhat.
Despite these regional variations, it can't be denied that homes of all kinds, and in just about all regions, have risen considerably in the last decade, and although those increases are moderating somewhat, prices are still reaching new records on a seemingly monthly basis.
It's great news for homeowners (and flat-owners in particular) as it means that their level of equity could have ramped up significantly in recent years, which means they could switch to a lower loan-to-value (LTV) when it's time to remortgage, or benefit from a healthy sum to put towards a step up the ladder! Want to take the plunge? Then take a look at our mortgage best buys to find the deal that could fund your move.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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