Should you Invest in a House or a Flat?
To invest in a house or a flat? Is difficult a question many investors are faced with. Now new research shows that flats have risen more in the last 5 years than houses. In fact, every month the average flats value increased by an average of £1,250, according to new research released today by the Halifax. UK flat prices have risen by £75,074 over the last five years. The average price has grown from £157,061 in 2013 to £232,135 in 2018. And while flat sales are in the minority in the UK. 6 in 10 properties sold houses, either terraced or semi-detached properties. Flat prices are outstripping all other property prices. Flats have risen by 48 percent, compared with a 39 per cent increase from non-flats. Many property investors especially foreign buyers are drawn to buying a property which is “freehold”, however, as the legal system in the UK, stipulates that to own a freehold property, the owner must also own the land beneath it; which is impossible in most cases of apartment buildings. Detached properties – the ultimate aim for many end-user buyers, have performed the worst over the last five years, increasing in price by 27 percent.
Why are they rising faster?
It is important to put these figures into context regarding the areas where the majority of apartments are found. In urban city areas, there will be a higher ratio of apartments. Furthermore, the city areas are the areas which attract the lions share of overseas investment. Furthermore, they are the areas which are experiencing the more substantial infrastructure upgrades are taking place. Despite flats gaining most value, Halifax managing director Russell Galley said semi-detached and terraced properties – the latter of which have risen by an average of 41 percent over the last five years – are the most popular choice for homebuyers. Galley added: More than a third of first-time buyers are still choosing terraced homes as their first step on to the property ladder, but we’re starting to see more of them choose detached houses, as the number has crept up in recent years. Flat prices in London have more than doubled over the last five years, contributing significantly to the national increase. The average price of a flat in the capital now stands at £393,235 – £276,377 more than flats in Wales (£116,858) have to pay.
|Property Type||Q1 2013||Q1 2017||Q1 2018||1 year % Change||5 year % Change|