Average price gap between houses and flats is at 'highest point in 30 years'
There is now a 67% difference between the average UK flat price and the typical value of a house
An estate agent in Suffolk's warning more it's getting more difficult for people to get on the property ladder.
It's as Zoopla records show the gap between the price of a typical house and flat is at a 30 year high - with a 67 per cent difference between the average UK flat price, at £191,300, and the typical value of a house, at £319,500.
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%.
Matt Yates is from Nicholas Estates in Felixstowe
Matt Yates, from Nicholas Estates in Felixstowe, believes that we're now seeing the consequences of the property decisions that people made during and shortly after the COVID-19 pandemic: "Some people paid over the odds for their property at the back end of the pandemic when prices were going mad and they borrowed money at quite a cheap rate.
"Now they're going to be three or four years on, remortgaging at a considerably higher rate, potentially at negative equity on their house because prices went up ten 15- 20% in certain areas, and now they've dropped 10-15-20% in certain areas...
"So many people will be thinking whether or not they can afford to continue to live in their home."
"People can no longer afford their homes"
He also explained that for the housing market to stay competitive, it needs to see first-time buyers: "The market is consistent and steady at the moment.
"That's the full range, from that first-time buyer level, that we've now started to see come back into the market to the mid-level and beyond that.
"But it's the first time buyers that we need to allow the rest of that to happen."
Advice to get on the property ladder
Matt's urging people not to rush into getting onto the property ladder - and to do their research before making any big decisions.
He tells us people need to think about all the costs that go into buying a new home, especially flats - which may appear cheaper, but can sometimes have hidden costs to consider: "Are flats more affordable in the grand scheme of things?
"You need to remember you'll likely have service charges and ground rent depending on when you're purchasing and how old the building is.
"You've then got ongoing costs, so you have the potential for the service charge to increase over a period of time."
He also urges people to shop around before getting a mortgage: "Research. That's the best advice I can give everybody, just look into it, do your homework, look at the property websites, and speak to a few agents.
"Shop about.
"People shop around for car insurance, house or phone insurance, but they often stick with one bank for their mortgage.
"It's the biggest debt you're ever going to have in your life, why don't you shop about?"
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