The average price of a flat in the UK has risen by £75,074 over the last five years, equivalent to £1,251 per month, according to new research.
Despite their popularity dipping, accounting for just 15% of all homes sales, the average price of a flat has grown from £157,061 in 2013 to £232,135 in 2018, the data from the lender the Halifax shows.
Although six in every 10 property sales last year were either terraced or semi-detached properties, flats have increased in value by 48%, compared to 39% for all property types over the same period.
Meanwhile, terraced homes have seen average prices rise by £60,482 or 41%, the second largest increase in percentage terms, since 2013, while detached homes recorded an increase of £73,638, although this is the smallest increase in percentage terms at 27%.
Terraced properties remain the most popular home for first-time buyers. However, the proportion of sales has cooled slightly over the past five years from 40% to 37%, whilst the popularity of detached properties has increased from 6% to 8%.
Overall, terraced homes remain the most affordable property type in the UK with an average price of £208,311, followed by semi-detached at £225,123 and flats at (£232,135. But it is a different picture outside of London where flats are the most affordable properties at £166,386 followed by terraces at £184,529.
However, only buyers in the North can snap up a terraced home for less than £125,000, below the lowest stamp duty threshold, with terraces in the region costing £116,740. Five years ago, seven regions had the average price for a terraced home below £125,000.
But flat prices in London have more than doubled over the last five years, contributing significantly to the national increase. The average price of a flat in the capital now stands at £393,235, some £276,377 more than flats in Wales at £116,858.
Despite a rise in value, the popularity of flats appears to be waning across the regions. They are the best performing property in only two out of 11 regions, the North West at 51% and the South East at 50%, joint top with terraced homes.
Terraced homes perform best in six regions with East Anglia at 62%, Greater London at 56%, equal with bungalows, the South East at 50% and the same as flats, the West Midlands at 40% and the same as semi-detached, Yorkshire and the Humber at 35% and equal with semi-detached homes, and Wales at 30%. The South West is the only region where detached properties achieve the best price performance.
‘Although flats have recorded greater price gains over the past five years than any other property type, semi-detached and terraced homes have remained the most popular choices for home buyers,’ said Russell Galley, managing director of the Halifax.
‘More than a third of first-time buyers are still choosing terraced homes as their first step on to the property ladder, but we’re starting to see more of them choose detached houses, as the number has crept up in recent years,’ he added.