Andy Hill, Chief Executive of Hill Group, emphasises the central importance of a recovery in the housing segment for revitalising the entire British residential property market. His assessment is based on an analysis of current market data, which shows a significant discrepancy in the value development of houses and flats.
Since 2016, there has been a clear price increase in the British residential property sector. While house prices have risen by 43%, flats have seen an increase of only 10%. This unequal development indicates a current buyer preference for houses and presents the flat segment with greater challenges regarding value stability and demand.
Challenges and prospects for flats
The lower price development for flats can be attributed to various factors, including changing housing preferences that intensified during and after the pandemic, as well as potentially a higher supply in some urban centres. Incentives for first-time buyers in recent years, such as the “Help to Buy” scheme in England, have predominantly focused on new-build flats, which, however, has not sufficiently supported the broader market dynamics for existing flats.
According to Hill, targeted measures are necessary to restore buyer confidence in flats. This could include incentives for buyers specifically aimed at the flat segment, as well as an increased focus on the quality and attractiveness of flat offerings. A healthy mix of different housing types is essential for a stable and diversified property market.
The Hill Group, as one of the largest private housebuilding companies in the United Kingdom, is keenly interested in the outcome of this market development. In his analysis, Hill points out that a balanced recovery of both sectors – houses and flats – is not only of great importance for developers but also for a broader segment of the population to ensure access to affordable housing and to support the overall economy.
