Will flats become popular again?

[wellman]

In London, flat prices appear to be depressed compared to house prices. But many flats, such as those in early 1900s mansion blocks have large rooms with good proportions. Every one seems to want a house.

Friends in Paris and Hong Kong have no interest in buying a house and moving to the banlieue. Most people want to live as centrally as possible in a nice flat.

So I wonder if flats will become popular here at some point?

Who knows really? They appeal to downsizers, City employees, those with no children etc. but families May not be so enthusiastic.

Since covid, I think homes without private outside space, be it balcony, terrace, patio etc. are not popular anymore. I like flats/apartments, but I would never buy one without my own private space, so mansion blocks would be out for me.

Umm what do you mean "become popular again"? We live in a London block with large flats (1930s) and they are definitely selling.

We do have a communal garden, parking and large private balconies though.

The market for flats definitely stagnated during and immediately after covid. We have friends who sold their London flat in 2022 for the same price they bought it for 5 years previously. But I don't think that means flats are unpopular per se, more that the market is less insane and people have to accept you can't buy a flat and expect to sell it on for a big profit in a couple of years.

There's a market for flats in my South East city because people can't afford the extra £100k for a house.

It's not an ideal option. I live in a flat and have to deal with communal problems, fees to the freeholder and a lease that needs extending in the next 5 years.

We are looking at moving away for a house in an area where houses are cheaper.

I also think it's partly about the decline in the reputation of the leashold system. I think that decline is likley to continue - but it will always suit some who can afford to pay the extra charges for convenience. That pool of people is likley to become smaller though. The leashold reform act of 2022 has left a lot of leaseholders in situations that would now no longer be seen as fair.

There are issues with some aspects of leasehold (mainly shit systems imposed by housing developers).

However for flats there has to be a system for communal maintainence. Commonhold can work but it can also leave shared areas deteriorating if people do not agree on how to fund or manage works to shared areas.