Property experts have identified the widest gap between the cost of flats and houses in the UK in at least 30 years. According to property website Zoopla, the average house now costs 1.7 times the price of a flat.
Price Trends Over the Past Decade
Zoopla reported that the average price of a house has increased by 43% since 2016, while the typical value of flats has seen only a 10% rise. This disparity means the average house now costs 1.7 times the price of a typical flat, up from a multiple of 1.3 times a decade ago.
Regional Variations
Outside London, the gap is even wider. A house now typically costs 2.3 times the price of a flat, compared to 1.8 times in 2016. In Greater Manchester and the North West, the average flat price is £120,000, whereas the average house price is £273,000 — a ratio of 2.3 times. In Scotland, the ratio has barely changed, with houses costing 1.9 times flats, similar to the 1.8 multiple in 2016.
Impact on First-Time Buyers
This increasing gap could make it more challenging for those who bought a flat as their first home and now seek a house for more space. Buyers can typically expect to pay £327,000 for a house, £134,000 more than the average flat price of £193,000. In the West Midlands, a house typically costs 2.5 times a flat, the highest ratio of any English region.
Expert Insights
Richard Donnell, executive director at Zoopla, said: “Buyers who invest time to research and understand the system and get support can take advantage of the gap between flat and house prices. A well-managed building with a long lease and stable service charges is a very different proposition from a property with less clarity on service charges and a short lease.”
Jen Lloyd, head of mortgage products and propositions at Skipton Building Society, added: “After years of saving a sizeable deposit, many buyers feel more established and are purchasing with longer-term plans already in mind – thinking about a growing family or pets. They are choosing a home they can truly settle into instead of a flat that they anticipate outgrowing quickly.”
Data Table: Average Prices by Region
- London: flats £416,000, houses £809,000, ratio 1.9
- South East: flats £207,000, houses £480,000, ratio 2.3
- Eastern England: flats £186,000, houses £396,000, ratio 2.1
- South West: flats £174,000, houses £368,000, ratio 2.1
- West Midlands: flats £120,000, houses £296,000, ratio 2.5
- East Midlands: flats £113,000, houses £264,000, ratio 2.3
- North West: flats £120,000, houses £273,000, ratio 2.3
- Yorkshire and the Humber: flats £104,000, houses £250,000, ratio 2.4
- North East: flats £86,000, houses £202,000, ratio 2.3
- Wales: flats £116,000, houses £248,000, ratio 2.1
- Scotland: flats £118,000, houses £223,000, ratio 1.9
- Northern Ireland: flats £139,000, houses £223,000, ratio 1.6
