Flats are the one property kind to have seen a drop in worth during the last 12 months

The most recent analysis from Searchland, the event web site sourcing specialists, has proven that whereas many builders might have their sights firmly fastened on the event of condominium blocks, they’re the one property kind to have seen a decline in worth on an annual foundation.

Searchland’s knowledge analysed the worth per sq foot of every property kind through the first six months of this 12 months and the way this compares to the identical interval in 2022.

The figures present that, general, the typical property has commanded £295 per sq. foot to this point this 12 months, a 1.4% enhance versus final 12 months.

That mentioned, when breaking the info down by kind of property, worth efficiency does differ fairly drastically.

At £337 per sq. foot, indifferent houses not solely command the best worth within the present market, however they’ve seen the most important annual enhance, up 4.3% within the final 12 months. Semi-detached houses rank second on this respect with a rise of two.5%, adopted by terraced houses (+0.8%)

Flats, nonetheless, have seen a discount of -1.2% in worth 12 months on 12 months, though at £335 per sq. foot, they continue to be the second most profitable endeavour for builders.

When breaking the info down even additional, this time leasehold houses solely, flats stay the one property kind to have seen a decline, down -0.9% within the final 12 months. Though, once more, they command a powerful worth at market, essentially the most of every other leasehold property kind at £337 per sq. foot.

Actually, it’s semi-detached leasehold houses which have seen the strongest development, up 4.3% within the final 12 months.

Curiously, on the subject of Searchland’s evaluation of freehold houses, flats have loved the second highest enhance within the final 12 months. The typical worth of a freehold flat has elevated by 3.7% within the final 12 months, now at £277 per sq. foot.

Nonetheless, on the subject of the very best performing freehold property, it’s indifferent houses that reign supreme once more, commanding the strongest market values at £340 per sq. foot and having seen the most important annual enhance at 4.6%.

Co-founder and CEO of Searchland, Mitchell Fasanya mentioned, “Our newest knowledge launch might make for worrying studying for the nation’s housebuilders, as not solely are flats the commonest property kind to deliver to market, however the overwhelming majority shall be leasehold.

In fact, whereas a marginal discount in worth per sq. foot is much from ultimate on the subject of maximising revenue margins, it’s vital to keep in mind that a far better variety of flats will be delivered in a single plot versus the area required to construct a growth of indifferent and semi-detached houses.

So whereas flats might have taken a knock the place topline values are involved, they’re more likely to stay essentially the most worthwhile endeavour for the nation’s housebuilders to pursue.”