Rising flat prices outpace houses as mortgage costs rise

The price of flats is rising at a higher rate than houses as mortgage costs jump and workers are ordered back to the office. According to data from lender Halifax, the average price of a flat rose by 2.7% in the year to February, while the prices for semi-detached and detached homes increased by 1.7% and 2% respectively. Buyers have been adjusting their expectations to compensate for higher borrowing costs and the general cost-of-living squeeze. The return of workers to the office has also pushed up the cost of flats in big cities. "As interest rates have stabilised and buyers adjust to the new economic reality of owning a home, one way to compensate for higher borrowing costs is to target smaller properties," said Amanda Bryden, head of Halifax Mortgages. 

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