Over the last decade the price of flats has risen much faster than the price of houses, according to research for the Halifax.
While flats have risen by 60% in value over that time period, the average house has only gone up by 34%, it said. Detached homes have seen the smallest price rise, at 21%.
At the same time the Halifax said the rise in UK house prices in the year to September slowed to 8.6%, from 9% previously. Between July and September, prices went up by 2% compared with the previous quarter.
On a monthly basis, the Halifax said prices in September dropped by 0.9% compared with August. As a result the value of the average house or flat in the UK has fallen to £202,859.
Last week, rival lender Nationwide said that house prices rose by just 3.8% in the year to September. It also said that the gap between prices in London and the rest of the UK had reached a record high.
The relative popularity of flats has fallen over the past decade, according to the Halifax research. In 2005, 20% of all property sales were flats. Ten years on, that figure has fallen to 17%. Price rises have therefore been driven by flats in the capital.
“The national increase in flat prices has been led by London where flats account for roughly one in two property sales; substantially higher than for the country as a whole,” said Martin Ellis, Halifax’s chief economist.
Source: BBC News