The price gap between houses and flats across the UK has widened to its highest level in three decades, according to new data from property website Zoopla.
The figures show a 67% difference between the average price of a flat, which stands at £191,300, and the typical value of a house, at £319,500. This record-breaking disparity is making it increasingly difficult for homeowners—particularly former first-time buyers—to move up the property ladder.
Flats becoming harder to sell
Flats currently make up around one in four homes listed for sale, Zoopla reported. The first few weeks of 2025 have seen a notable rise in the number of flats coming onto the market. However, a mismatch between supply and demand has meant that prices for flats have risen by just 0.5% over the past year, compared to a 2.2% increase in house prices.
Over a five-year period, the difference is even more pronounced. The average price of a flat has grown by 7%, whereas house prices have surged by 24%.
Why has the price gap grown?
The growing divide between house and flat prices can be attributed to shifting buyer preferences, particularly in the wake of the Covid-19 pandemic. The demand for houses—especially those with gardens and additional space—soared during lockdowns, as people sought homes better suited for remote working and outdoor living.
Zoopla’s data also shows that house price growth has slowed across most regions in the UK, partly due to concerns over rising stamp duty costs from April. Buyers in England and Northern Ireland, where the tax applies, are increasingly factoring these changes into their offers, helping to moderate overall property price increases.
The website added that the early 2000s saw the smallest recorded difference between house and flat prices, with both growing at a similar rate before the pandemic shifted market dynamics.
What this means for buyers
Richard Donnell, executive director at Zoopla, said:
“Buyers are still prioritising houses over flats, but there are opportunities for canny buyers prepared to do their homework and weigh up the purchase of a flat rather than potentially waiting longer to buy a house.”
He added: “While market activity is on the rise, we expect house price growth to be kept in check over 2025. There has been a sizeable increase in homes for sale in the early weeks of the year, which is giving buyers greater choice and stronger negotiating power.”
Donnell also highlighted that higher stamp duty costs from April could further slow price growth, predicting an annual increase of between 2% and 2.5% in 2025. However, he noted that more affordable regions outside southern England could see stronger-than-average growth.
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Regional breakdown of prices
Zoopla’s report also provided a detailed regional breakdown of average flat and house prices as of January 2025:
- East Midlands – Flats: £113,500, Houses: £259,000
- Eastern England – Flats: £188,400, Houses: £390,200
- London – Flats: £418,100, Houses: £797,000
- North East – Flats: £83,300, Houses: £193,300
- North West – Flats: £115,900, Houses: £259,600
- Northern Ireland – Flats: £127,200, Houses: £202,200
- Scotland – Flats: £112,600, Houses: £212,000
- South East – Flats: £210,600, Houses: £477,000
- South West – Flats: £176,500, Houses: £365,600
- Wales – Flats: £114,900, Houses: £240,200
- West Midlands – Flats: £118,400, Houses: £288,200
- Yorkshire and the Humber – Flats: £104,300, Houses: £241,800
Looking ahead
While Zoopla expects price growth to be subdued in 2025, it remains to be seen whether the increasing availability of flats on the market will help to close the growing price gap.
For buyers hoping to trade up from a flat to a house, the figures suggest a widening affordability challenge. As stamp duty changes come into effect, many prospective homeowners may need to reconsider their budgets or look beyond London and the South East for more affordable options.
