Pandemic space race: Flats are back but prices are slow to catch up with detached homes
The average price of a flat has climbed just one per cent since the start of the pandemic, while detached homes have jumped by 10 per cent, according to the latest data.
The data, from property website Rightmove, suggests that Brits’ property choices have been permanently changed by the pandemic.
When Covid-19 brought three national lockdowns in motion in the UK, the number of estate agents facing inquiries of houses with larger gardens and more space soared.
However, Rightmove director of property data Tim Bannister explained that the market is rebasing at its pre-pandemic state.
“In the first few months of the housing markets reopening across Great Britain last year flats were temporarily out of favour as people sought bigger homes with more space further out, but we’re now seeing this trend start to shift back again,” he said.
The average asking price for a detached home has swelled by a near £46,000 since the beginning of the pandemic, hitting over £500,000 nationally.
While flats have inched just £2,000 higher since last year, across the UK. The average asking price for a flat in London is now £534,054 – a drop of two per cent since before the pandemic in February 2020.
But sales agreed for flats are up by 14 per cent when comparing June and July of this year with the same months in 2020.
‘Detached homes, flats and everything in-between’
With flat sales on an uplift, the city-slick property could be on the edge of picking up the pace in terms of price – particularly for those who are adamant about sticking in London.
“Whilst the demand for flats during the pandemic may have weakened on a national level, London apartments remained a popular choice for city dwellers,” head of sales at Chestertons, Cory Askew, said.
“Interest in flats has seen a particularly strong increase since the easing of lockdown restrictions and partial return of office workers, looking for a home closer to work.”
Similarly, Benham and Reeves director Marc von Grundherr explained that while priorities have likely shifted permanently on a national level – apartment living is here to stay for London’s homebuyers.
“There’s no doubt that the priorities of London homebuyers will have changed as a result of the pandemic, with more space and the availability of green space, in particular, leapfrogging the traditional requirements of a quick commute or the close proximity of amenities.
“However, we don’t believe that the demand for apartment living will disappear. For many it offers a more affordable foot on the ladder and a preferable option from a lifestyle point of view.”
The number of sales agreed for detached homes is has tumbled 20 per cent compared to June and July 2020, though still up by seven per cent on June and July 2019.
“As London continues to recover from the problems posed by the pandemic and as travel restrictions ease, we expect the London property market to show strong signs of growth across the board – whether that be detached homes, flats and everything in-between,” Von Grundherr added.