UK house price focus: demand returns for flats and cities

 

The latest UK house price index from Halifax shows yet another uptick in the country’s property values, but it seems the “race for space” may be starting to lose its shine for some. 

A 1% monthly rise in property prices in November has marked a 15-year high in house price growth, according to the latest data compiled by Halifax. With the average home in the UK now costing £272,992, values have risen almost £13,000 since June this year.

On an annual basis, house price growth reached 8.2%, adding around £20,000 to the value of an average home. In London, house prices have reached a colossal average of £521,129, but growth there has been by far the slowest in the country, with an annual rise of only 1.1%, says the bank.

But house price rises haven’t been evenly spread across all property types, it seems. While larger, more remote homes seemed to soar in popularity in the wake of the pandemic, flats and city centre locations are once again coming to the fore, according to the research.

House price shifts across property types

Halifax says that house price growth for flats has in fact begun to outpace that of detached houses in its latest findings. The price of the average flat has risen by more than 10% over the past 12 months, whereas prices of detached homes have increased by just 6.6%.

The stamp duty holiday caused a big swell in property transactions across the UK. But this also skewed buying trends as more people were inclined to try and buy bigger properties to make the most of savings. Yet for landlords and property investors in particular, the stamp duty holiday could also be used to benefit from buying a flat that may otherwise have not been attainable.

During the pandemic, many people found their lifestyles and work styles had drastically changed. Home-working became – and in many cases remains – the norm. So buying a larger property outside the city centre became more appealing. But since things have opened up, with many returning to office life at least some of the time, the draw of living in the city centre is making a comeback.

More competition for flats

Property portal Rightmove has also reported a shift in what people are looking for. Its latest data from last month showed that more people were searching for flats now, while earlier in the year it was detached homes.

Of course, the figures are honing in on buyer demand, but behavioural trends will certainly be reflected across the private rented sector. While some tenants may have sought out larger, more remote homes during the pandemic, there is evidence to suggest that many renters are still keen to live in cities and major towns, close to work and other conveniences.

Rightmove’s property data expert Tim Bannister said: “A shift in demand from bigger houses to flats has emerged as more of society has opened up again and people have assessed where they will work throughout the week, with many now considering a move closer to a city than further out.

“Prospective buyers looking for a flat, with a must-have for many of them now being a shared garden or balcony, will find there’s more availability than other property types and lower average asking price growth over the last year, but there’s now more competition.”

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

house price flats

UK house price focus: demand returns for flats and cities

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.