Dreaming of buying a house? This could be being pushed further out of reach, new data from Zoopla shows.
It’s becoming increasingly difficult for Londoners to upsize from a flat to a house, with the gap between the two at a 30-year high. Houses now cost 1.9 times more than flats, on average.
Fuelled by post-pandemic demand, house prices have continued to grow at a faster rate than flat prices. Over the past five years, house prices across London have risen by 17 per cent, whereas flats have only seen a one per cent increase in value.
This trend is being played out nationally too, with houses prices growing by 24 per cent on average, compared to seven per cent for flats. Across the UK, the average house now costs 1.7 times more than the average flat.
Predictably, property prices in London are also much higher than the national average. Flats in London cost 2.2 times more than the national average, at £418,100 compared to £191,400, while houses are 2.5 times more expensive. The average London house now costs £797,000; the UK average is £319,500.
Where to upsize in London
If you’re looking to upsize in London, however, it will be easier in some boroughs than in others.
The price difference between houses and flats is smallest in Newham, where the average house (£543,515) costs only 1.6 times more than the average flat (£333,508).
House prices in Newham are amongst the most affordable in London, but they are not the lowest.
Although there is a strong correlation with overall affordability, Zoopla’s data shows that the cheapest areas are not necessarily the places where it is easiest to upsize.
Barking and Dagenham has the lowest average house prices in London, at £428,304, and is the second-easiest place to upsize between a flat and a house, followed by Greenwich. In both areas, houses cost 1.8 times more than flats.
In all but five boroughs —Newham, Barking and Dagenham, Greenwich, Tower Hamlets and Waltham Forest— houses are more than double the price of flats.
The most expensive areas to buy a house
London’s most expensive areas have the biggest gulf between flat and house prices. In Kensington and Chelsea, the capital’s hardest area in which to upsize, the average house (£3,093,766) costs 3.6 times more than the average flat (£870,937). This means that sellers of flats will need to find an extra £2,222,800 to buy a house.
In Westminster, Camden and Wandsworth, houses are also more than triple the value of flats. The average house in Westminster costs £2,563,700 – £1,762,800 (69 per cent) more than the average flat, at £801,000.
In Camden, likewise, houses (£1,882,800) cost £1,281,000 (68 per cent) more than flats (£601,800). In Wandsworth, the average house (£1,471,200) is triple the price of a flat (£496,800).
Zoopla’s data does not include the City of London, because there are under 100 houses in the borough in total.
Why are houses so much more expensive than flats?
Houses are more in demand than flats in the current market
Daniel Lynch
Buyers are prioritising houses over flats in the current market, which is causing a mismatch of supply and demand. Houses are both more in demand than flats at present, and in shorter supply.
“The first lockdown in early 2020 rapidly increased the demand for houses as more people worked from home and needed larger properties with outdoor spaces,” said Sebastian Verity, head of research at Chestertons.
“It is now clear that this trend has continued in London; houses are growing in value quicker than flats and making up a larger proportion of the market than before the pandemic.”
The first two months of 2025 have seen this trend accelerate. According to Zoopla, there has been a double-digit (14 per cent) increase in the number of flats on the market nationwide, while the number of houses for sale has risen by five per cent. Flats account for one in four homes currently for sale.
The number of flats for sale, Zoopla found, is outstripping both the number of agreed sales and buyer demand. In contrast, demand for houses is 16 per cent higher than a year ago, while available supply is just five per cent higher.
Concerns over the running costs of flats —especially service charges and ground rents— and building safety in recent years have also acted as a drag on prices.
“Flats have become even cheaper compared to houses over the last 5 years,” says Richard Donnell, Zoopla’s executive director.
“Buyers are still prioritising houses over flats but there are opportunities for canny buyers prepared to do their homework and weigh up the purchase of a flat rather than potentially waiting longer to buy a house.
“While market activity is on the rise, we expect house price growth to be kept in check over 2025.
“There has been a sizeable increase in homes for sale in the early weeks of the year which is giving buyers greater choice and stronger negotiating power.
“Higher stamp duty costs for many from April will keep a lid on prices which we expect to increase by two to 2.5 per cent with above average growth in more affordable markets outside southern England.”