Overview

• The average UK house price has risen to £319,500, a 24% increase over five years, compared to a 7% rise for flats, which now average £191,300.
• Flats account for 25% of properties currently on the market, but cladding concerns, high service charges, and leasehold complexities have dampened demand.
• The COVID-19 pandemic triggered a 'race for space,' as buyers prioritized houses with gardens or terraces over smaller flats with limited outdoor areas.
• Zoopla data shows that aspiring homeowners increasingly prefer three-bedroom houses, with demand for one- and two-bedroom flats declining significantly since 2017.
• Experts suggest the slower price growth of flats could offer opportunities for first-time buyers, though challenges like fire safety remediation costs persist.