Demand for flats in London has increased recently, as homebuyers shift their interest from buying houses to apartments.
According to Zoopla, 27 per cent of new buyers were looking for one and two-bedroom flats last month. This is an increase of five per cent from the same month in 2022.
Demand for flats in London was particularly high in January, with almost half (49 per cent) of homebuyers searching for one and two-bedroom apartments. This is seven percentage points higher than a year ago.
Executive director at Zoopla Richard Donnell said: “There has been a clear shift towards flats, as the early buyers focus on value for money and adjust expectations given the hit to buying power from higher mortgage rates.”
The findings revealed flats are considerably cheaper than houses, which could be the reason why more people are looking for them as the cost-of-living crisis continues. Indeed, outside the capital, the average two-bed flat is nearly £100,000 cheaper than a typical three-bedroom home, while a one-bedroom apartment is £150,000 less expensive.
Demand for three-bedroom houses has also dropped by five per cent over the year, as buyers look for more affordable options.
However, this type of property is still the most popular in the UK, with 39 per cent of buyers hoping to have an offer accepted on one.
The latest Halifax House Price Index reported the average home in the capital last December was £541,239, making it the most expensive place in the UK to buy.
To help you get on the property ladder in London, purchasing a flat could be the answer. For more information on available properties for sale in Cheam Village, give us a call today.