Average price has grown from £157,000 in 2013 to around £232,000 in 2018
In a study by Halifax, they found that the average flat price growth has outperformed all other property types, despite their general popularity among buyers dipping.
With flats now accounting for 15% of all home sales, the average price has grown from £157,000 in 2013 to around £232,000 in 2018. In contrast, UK terraced and semi-detached property prices only rose by 39% in the same period.
Although terraced properties remains one of the most popular types of property, especially among first-time buyers, the amount of sales has decreased slightly since 2013.
This is most likely down to terraced homes being the most affordable property types in the UK on average, sitting at an average price of £208,300. Semi-detached closely follows with average price of £225,000 and flats sit at the other end of the scale on £232,000.
Taking London out of the equation shows a different picture entirely, as flats jump to the most affordable spot, with an average price of around £166,000, despite experiencing incredible growth. Flat prices in London particularly have more than doubled over the last five years, which contributes heavily to the national increase.
Birmingham leading the Private Rental Sector
This news comes at a time when residential land prices are generally increasing, especially in more robust areas such as the Midlands.
Birmingham is the top performer and leads the private rental sector, experiencing urban land value growth of 6.3%. As inwards investment and regeneration projects pour into the second city, some central spots have seen their land value almost double in 12 months.
Other factors such as the Commonwealth Games and HS2 alongside an expanding employment hub means the appetite for private rentals is ever-increasing, with Savills’ predicting a further increase of 15% over the next five years.
Land values have also increased in areas such as Coventry and Leamington Spa, which have experienced 7% increases in the last year. Coventry in particular has seen incredible growth with property values growing by 8.5%.
In the capital, the property market is experiencing more of a slowdown. This is bad news for Greater london but excellent for the extended Commuter Belt, which is buoyed by incredible potential for property growth and has many more sites available for acquisition. Commutable towns such as Slough, Reading, Basingstoke and Luton are experiencing renewed investment and have sites ready in a market less hindered by planning restrictions.
This bodes well for owners of flats across the nation, especially in major cities where there is a definitive lack of supply. As we enter the second half of 2018 and look to 2019, residential development values only look set to rise.
Birmingham Property News by SevenCapital