Flats Are Back In Fashion | Prestige & Village
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Flats Are Back In Fashion

Things can change quickly in the housing market, and this can be seen with flats being in greater demand now than they have been at various times in the past year. We know this isn’t a type of property that everyone who calls on Prestige & Village for support is interested in, but it needs to be remembered that everything in the housing market is connected.

The first-time buyers coming onto the market help people move up, so if demand for flats is present, there is an opportunity for further demand further up the market.

Asking prices for flats has remained consistent

Information provided by Rightmove suggests the average asking price of a flat has remained consistent. A 1% increase, leading to a rise of £2,000, sees the average asking price of a flat stand at £277,302.

Are flats making a comeback?

The information provided by Rightmove suggests flats are returning in popularity:

  • The number of agreed sales for flats in June and July 2021 was 14% higher than the 2020 figures for these months
  • The number of agree sales for flats in June and July 2021 were 24% higher than the June and July 2019 figures

Some of the reasons cited for the heightened interest in flats include:

  • The easing of lockdown restrictions
  • Medium to long-term working patterns being clarified
  • An increase in low deposit mortgages helping buyers

How are detached properties faring?

Rightmove suggests the asking price of a detached home has risen by 10% in this period. In February 2020, detached homes had an average price of £471,406; and it now stands at £517,180.

The information provided by Rightmove tells a different story regarding sales for detached properties:

  • The number of agreed sales for detached properties in June and July 2021 was 20% less than the 2020 figures for these months
  • The number of agree sales for detached properties in June and July 2021 were 7% higher than the June and July 2019 figures

How does the average asking price for flats differ across the country?

  • In the North East, the average asking price for flats is £103,098
  • In the South East, the average asking price for flats is £235,073
  • In London, the average asking price for flats is £534,054
  • The London price represents a fall of 2% since the time before the pandemic started in February of 2020

Tim Bannister, Rightmove’s Director of Property Data, said; “Navigating a busy market can be daunting for buyers, especially if they’re looking to get onto the property ladder for the first time. However, the latest data might suggest an opportunity for some first-time buyers, with average asking prices for flats currently up by 1%, which is significantly less than the price increases we’ve seen for other property types. In the first few months of the housing markets reopening across Great Britain last year flats were temporarily out of favour as people sought bigger homes with more space further out, but we’re now seeing this trend start to shift back again.”

Tim Bannister also said; “This means it could be a good time for those first-time buyers who would like to buy a flat to see what’s available before prices start to rise further, as the majority will benefit from being exempt from stamp duty and, although activity is increasing, there’s still less competition among buyers for flats than for houses right now.”

Tim Bannister concluded by saying; “The sharp rise in average asking prices for detached homes probably comes as no surprise to those who have been following the rush for room that emerged when the market reopened, and with available stock still limited and strong demand continuing, we’re unlikely to see prices fall for this property type anytime soon.”

At Prestige & Village, we care about our community, and supporting others. We aim to provide you with as much help and assistance as we can. If you have any property or housing questions, please feel free to contact us today.

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