Flats are the ‘goldmines’ of the UK property market, with prices rising by an average of almost 150% in the last decade, according to figures from Halifax.
The average price of a flat has risen from £50,355 in the third quarter of 1992 to £125,587 in the third quarter of 2002, an increase of 149%. This compares with an average increase of 112% for all properties. Over the same period terraced properties have risen by 120%, semi-detached by 106% and detached properties by 102%.
The increase in one-person households over the past 10 years, from six million to seven million, is part of the reason for the greater demand for smaller properties, along with a fall in the number of households with children.
Martin Ellis, chief economist at Halifax, said: ‘The increase in the price of flats reflects the increase in the number of single person households. It emphasises the need for planners to encourage an increase in the right type of properties to cater for the changing requirements of the home-buying population of the UK.’