UK house prices have surged three times faster than flat values since the onset of the pandemic, as buyers increasingly prioritize space and avoid properties affected by cladding issues and rising service charges, according to new research from property portal Zoopla.
Data from Zoopla reveals that house prices have climbed by 24% over the past five years, compared to just 7% growth for flats. The trend continued in the past year, with houses rising 2.2% in value while flats inched up by just 0.5%. As a result, the average house price now stands at £319,445—1.7 times higher than the average flat price of £191,309. This marks the widest price gap between the two property types in over 30 years.
The shift in demand is largely attributed to the so-called “race for space” triggered by COVID-19 lockdowns, which led many buyers to seek larger homes with outdoor areas. Flats, meanwhile, have faced growing scrutiny over high service charges, complex leasehold agreements, and building safety concerns—particularly those related to cladding.
“Flats have become even cheaper compared to houses over the last five years,” said Richard Donnell, Zoopla’s executive director. While houses remain the preferred option for many buyers, Donnell suggested that the relative affordability of flats could present an opportunity for investors.
Despite the sluggish growth in flat values, there are signs of renewed market activity. Zoopla recorded a 14% rise in the number of flats listed for sale in early 2025, compared with a 5% increase in house listings. However, many flat owners are struggling to secure profitable sales. The research found that 15% of flats currently on the market are priced below their previous purchase value, while 40% are listed at less than £20,000 above their last sale price.
Looking ahead, Donnell does not expect house prices to continue outpacing flats indefinitely. A key factor is the upcoming change to stamp duty rules in April, which has prompted a rush of buyers looking to complete deals before the new tax measures take effect. Zoopla reported a 10% year-on-year increase in agreed sales as a result. However, Donnell predicts that once this spike subsides, house price growth may slow, potentially allowing flat prices to catch up.
For now, the market remains skewed in favor of houses, with affordability concerns and regulatory uncertainties continuing to weigh on flat values. But as conditions shift in the coming months, some buyers and investors may see an opportunity in the underperforming sector.
