The average price difference between houses and flats has hit a record high, the largest since property website Zoopla began keeping records 30 years ago.
According to the site, there's a 67% disparity between the average UK flat price, standing at £191,300, and the typical house value, which is £319,500.
This growing gap could pose a challenge for some home buyers, particularly those looking to make their second purchase after their first home.
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Flats currently makeup about a quarter of all homes on the market, Zoopla reports, with the early weeks of 2025 seeing a significant surge in the number of flats listed for sale.
The site attributes the modest 0.5% rise in flat prices over the past year to an imbalance between supply and demand, while house values have seen a 2.2% increase.
Over the last five years, the average value of a flat has grown by 7%, whereas the average house price has soared by 24%. Zoopla noted that generally, property value growth either stalled or slowed across most UK regions and nations in January, partly due to buyers beginning to consider the impact of higher stamp duty costs from April, which apply in England and Northern Ireland.
Zoopla suggests that home buyers are likely to factor these changes—which will reduce the generosity of stamp duty discounts—into their offers to sellers. The overall effect is expected to keep house price growth under control throughout 2025.
Zoopla has reported that the price gap between houses and flats is currently the smallest since their records began in 2002, with both property types having experienced similar growth rates until the onset of the COVID-19 pandemic. The property website noted that during the pandemic, there was a surge in demand for houses as buyers sought more space.
Richard Donnell, Zoopla's executive director, commented: "Buyers are still prioritising houses over flats but there are opportunities for canny buyers prepared to do their homework and weigh up the purchase of a flat rather than potentially waiting longer to buy a house.
"While market activity is on the rise we expect house price growth to be kept in check over 2025. There has been a sizeable increase in homes for sale in the early weeks of the year which is giving buyers greater choice and stronger negotiating power."
Donnell further mentioned the impact of stamp duty changes: "Higher stamp duty costs for many from April will keep a lid on prices which we expect to increase by two to 2.5% with above-average growth in more affordable markets outside southern England."
Here are average flat prices followed by average in January 2025, according to Zoopla:
East Midlands, £113,500, £259,000
Eastern England, £188,400, £390,200
London, £418,100, £797,000
North East, £83,300, £193,300
North West, £115,900, £259,600
Northern Ireland, £127,200, £202,200
, £112,600, £212,000
South East, £210,600, £477,000
South West, £176,500, £365,600
Wales, £114,900, £240,200
West Midlands, £118,400, £288,200
Yorkshire and the Humber, £104,300, £241,800