London flat prices have outstripped every other property type in every other region of the UK over the last decade, according to research published by a major mortgage provider this morning.
Affordability is set to continue falling as data from HMRC yesterday showed the market was hotting up with 106,480 homes sold during August – the most for 18 months.
Flats in the capital are 67 per cent more expensive to buy than they were in 2005, Halifax said. The second biggest price gain was in London terrace houses, which have seen a 65 per cent climb in value.
The price of flats across the country went up by 60 per cent over the last decade, with their value growing by £730 every single month, more than any other type of property.
For all properties, London prices are up 61 per cent over the last 10 years compared with the UK average of 38 per cent.
“Flats have recorded larger prices gains over the past ten years than any other property type. The national increase in flat prices has been led by London where flats account for roughly one in two property sales; substantially higher than for the country as a whole,” said Martin Ellis, housing economist at Halifax.
Estate agents warned prices would continue rising. “The subsequent squeeze on available property for sale in the capital should keep pushing house price growth along well into the autumn,” said Peter Rollings, chief executive of Marsh and Parsons.