House prices have climbed three times faster than flat values since the start of the pandemic, with cladding concerns and mounting service charges weighing on the popularity of apartments, according to research from Zoopla.
The property portal’s data suggests that UK house prices have risen by 24 per cent over the past five years, compared with just 7 per cent growth for flats. Over the last year alone, flats edged up by 0.5 per cent, while houses advanced by 2.2 per cent. As a result, the average house price now stands at £319,445—1.7 times higher than the average flat price of £191,309—marking the largest price gap for more than three decades.
The “race for space” triggered by lockdowns was a key factor, with many people seeking larger homes and gardens after weeks cooped up indoors. Zoopla also points to the reputational harm suffered by flats amid mounting reports of high service charges, contested ground rents and concerns about building safety—particularly relating to cladding issues. “Flats have become even cheaper compared to houses over the last five years,” said Richard Donnell, executive director at Zoopla. While buyers still favour houses, Donnell believes there is scope for shrewd investors to capitalise on more affordable flats.
Signs of a modest rebound in flat prices in 2024 appear to be encouraging more vendors to test the market. In the opening weeks of 2025, Zoopla recorded a 14 per cent increase in the number of flats listed for sale, compared with a 5 per cent increase for houses.
Yet while flat owners now seem more willing to sell, a significant share stand to make little or no profit. Zoopla found that 15 per cent of flats currently on the market are listed below their previous purchase price, and about 40 per cent are set at less than £20,000 above the last sale.
Donnell said he does not expect house prices to continue outpacing flats indefinitely—particularly once additional stamp duty costs begin in April. A surge of buyers racing to complete deals before the threshold adjustment has pushed the volume of agreed sales up 10 per cent year on year. Once that rush subsides, he predicts relative price growth for houses may level off, potentially allowing more balance to return to the market.