Aneisha Beveridge, research director at Connells Group, said: “While headline house price growth picked up in April, it’s the shift within the market that stands out.
“Average flat prices have edged back into annual growth for the first time in nine months, suggesting buyer preferences may be starting to change.
“Flats have lagged behind the wider market for some time now. Over the last five years, their values have risen by just eight per cent, compared to around 18 per cent across all property types.
“That gap has been shaped by a combination of factors – from the lasting impact of the pandemic, which pushed buyers towards more space, to a growing desire to future-proof purchases as first-time buyers buy later in life.
“At the same time, increased scrutiny around leaseholds and rising service charges has made some buyers – and lenders – more cautious.
“But affordability is once again becoming the defining force in the market. As higher mortgage rates continue to bite, the relative value offered by flats is starting to come back into focus.
“Flats typically offer a lower entry point, and for some buyers — particularly first-time buyers — the trade-off between space and affordability is becoming more finely balanced again.
“This latest data suggests we may be seeing the first signs of that adjustment coming through.”
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