In 2025, the UK property market has demonstrated resilience, with house prices experiencing consistent growth. A significant trend has emerged: buyers are increasingly favouring houses over flats, leading to a notable price disparity between these property types.

Expanding Price Disparity Between Houses and Flats

Recent data indicates that the price gap between houses and flats has reached a 30-year high. The average house price stands at £319,500, approximately 1.7 times higher than the average flat price of £191,300. This widening gap is attributed to a pandemic-driven demand for more spacious homes and concerns over issues such as cladding and service charges associated with flats.

Buyer Activity and Market Dynamics

Despite economic challenges, the housing market has seen a surge in buyer activity. In February, UK house prices increased for the sixth consecutive month, with a 0.4% rise from January, bringing the average house price to £270,493—a 3.9% annual increase. This growth is partly driven by homebuyers rushing to complete transactions before an anticipated stamp duty increase in April.

Additionally, specific regions have experienced significant price hikes. For instance, Sunbury-on-Thames recorded the highest increase in house prices in 2024, with a 12.5% rise in average asking prices, growing from £527,005 to £592,976.

Factors Influencing Buyer Preferences

Several factors have contributed to the growing preference for houses over flats:

• Remote Work Trends: The shift towards remote work has increased the demand for homes with more space and dedicated work areas.

• Safety and Maintenance Concerns: Issues such as cladding problems and rising service charges have made flats less attractive to potential buyers.

• Financial Considerations: Higher mortgage rates and upcoming stamp duty changes are influencing buyer decisions and affordability.

Future Outlook

Looking ahead, house prices are expected to continue their upward trajectory, although growth may be tempered by economic factors such as inflation, interest rates, and ongoing affordability challenges. As buyer preferences evolve, developers and policymakers will need to adapt to meet the changing demands of the housing market.