The average price of a flat in the UK has risen by £87,550 (£730 per month) over the past decade, from £145,874 in 2005 to £233,424 today, according to latest research from Halifax.
The 60% increase in the average price of a flat is significantly higher than the 38% rise for all residential properties over the same period. However, a big proportion of the national rise in flat prices since 2005 is due to the rapid increase in flat prices in London (67%), where flats represent a relatively high proportion of the overall property market (49% of sales compared with the UK average of 17%).
Detached homes (21%) and bungalows (28%) have recorded the smallest rises over the last 10 years.
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. At £370,281, a typical London flat is considerably more expensive than flats anywhere else in the UK.
While flats have been the best performing property type over the past decade in Greater London, Scotland and the South West, there are regional differences.
Semi-detached properties have risen most in value in the South East, East Anglia and the East Midlands, whereas terraced homes have been the best performing property type in five of the 11 regions (North, North West, Yorkshire and the Humber, West Midlands and Wales).
The average price of a terraced home is between £119,000 and £143,000 in all regions outside southern England.
Semi-detached and terraced homes have remained the most popular types of property purchased over the past ten years. Combined, these two types represent 59% of all home sales in 2015; up marginally from 58% in 2005.
Semi-detached homes have risen in popularity among first-time buyers, accounting for 28% of purchases in 2015 compared with 21% in 2005. However, flat sales have fallen from 20% of all property sales to 17% over the past decade.
Martin Ellis, housing economist at Halifax, said: “Flats have recorded larger prices gains over the past 10 years than any other property type. The national increase in flat prices has been led by London where flats account for roughly one in two property sales; substantially higher than for the country as a whole.
“Overall, semi-detached and terraced homes have remained the most popular types among purchasers. First-time buyers have switched to some extent away from flats –reflecting their large price increases – towards semi-detached homes over the last decade.”