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    Home»Property»Average price gap between houses and flats ‘is at highest point in 30 years’, says property website Zoopla
    Property

    Average price gap between houses and flats ‘is at highest point in 30 years’, says property website Zoopla

    February 26, 20253 Mins Read


    The average price gap between houses and flats has reached its widest level since property website Zoopla’s records started 30 years ago.

    The website said there is a 67% difference between the average UK flat price, at £191,300, and the typical value of a house, at £319,500.

    The average price gap between houses and flats ‘is now at its highest point in 30 years’The average price gap between houses and flats ‘is now at its highest point in 30 years’
    The average price gap between houses and flats ‘is now at its highest point in 30 years’

    The widened gap could make climbing the property ladder tougher for some home buyers, such as former first-time buyers trying to take their second step.

    Flats currently account for around one in four homes on the market, Zoopla said, with the early weeks of 2025 having seen a particularly strong increase in the number of flats for sale.

    Zoopla said that a mismatch between supply and demand explains why prices for flats have risen by just 0.5% in the past year, with house values have increased by 2.2%.

    The average value of a flat has increased by 7% over the past five years while the average price of a house has jumped by 24%.

    The website said that in general, growth in property values, stalled or slowed across the majority of UK regions and nations in January, partly reflecting some buyers starting to factor in higher stamp duty costs from April. Stamp duty applies in England and Northern Ireland.

    Flat prices followed by average house prices in January 2025, according to Zoopla:Flat prices followed by average house prices in January 2025, according to Zoopla:
    Flat prices followed by average house prices in January 2025, according to Zoopla:

    Home buyers are expected to reflect the changes, which will make stamp duty discounts less generous, in their offers to sellers, Zoopla said.

    The overall impact will keep house price growth in check over 2025, it added.

    Zoopla said the gap between house and flat prices was at the narrowest on its records back in 2002, and up until the coronavirus pandemic, flat and house prices had grown at a similar pace.

    Demand for houses was boosted during the pandemic as buyers searched for properties with more space, the website said.

    Prices for flats have risen by just 0.5% in the past yearPrices for flats have risen by just 0.5% in the past year
    Prices for flats have risen by just 0.5% in the past year

    Richard Donnell, executive director at Zoopla, said: “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.

    “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.”



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